AtoB, the First Fintech Payment Platform to Modernize the US Trucking Industry, Announces $155 Million Series B Funding Round
AtoB has raised $230 million to date to fix Fleet Transportation’s broken financial system, address supply chain failures, and bring financial services to drivers and operators for the first time
A toB, the first fintech payments platform to modernize the $790 billion trucking industry’s broken financial system, announced today that it has raised $155 million in Series B funding. The funding is a combination of equity to scale its services over the next 12 months, and debt and CAC funding to provide working capital to small fleet businesses. This latest investment brings AtoB’s total debt and equity raising to $230 million.
AtoB’s Series B was led by Elad Gil and General Catalyst with participation from existing investors Collaborative Fund, Contrary Capital, XYZ Venture Capital and Leadout Capital. Earlier rounds were led by General Catalyst and Roy Bahat of Bloomberg Beta. AtoB’s individual and institutional backers include industry professionals Eric Schmidt, former Google CEO and executive chairman of Alphabet; Marc Benioff’s TIME Ventures; AngelList founder Naval Ravikant; DoorDash founders Tony Xu and Stanley Tang; Coinbase founder Brian Armstrong; Instacart CEO Fidji Simo; Jack and Max Altman of Altman Capital; and Long Journey Ventures.
AtoB’s payment platform offers a number of ground-breaking products for the fleet community for the first time, including free fleet cards; immediate direct deposit pay; and access to bank accounts and savings tools.
“AtoB works to improve the lives of the operators and drivers who drive the global economy. For too long they have been left without the basic financial services that most businesses take for granted. Our Series B will support new product development, working capital for small businesses and international expansion, so we can bring our services to more operators and drivers,” said CEO and co-founder Vignan Velivela.
America’s financial fleet system is broken. Truck drivers and fleet owners rely on under-regulated and exploitative fuel cards, which come with limited networks and prohibitively expensive fees; lacking access to low-cost capital for maintenance; and are paid through outdated legacy systems, such as paper checks that often cannot be deposited while drivers are on the road. The majority of these businesses are small: 92% of all trucking businesses operate 6 or fewer trucks; 97% use fewer than 20 trucks.
AtoB’s unique fuel analysis system flags fuel theft and opportunities to increase fuel efficiency, two of the biggest challenges facing the industry, while helping fleets reduce emissions and supporting the transition to cleaner fuels and electric vehicles.
“AtoB operates in a deceptively large market in an area that needs innovation. Creating a modern logistics and payment stack unique to the transportation industry is an important problem to solve to improve the global supply chain,” said Hemant Taneja, Managing Partner at General Catalyst . “Vignan Velivela, Harshita Arora, Tushar Misra and team think deeply about serving truckers and fleet owners well, and in doing so, they are building an enduring fintech company that empowers the transportation workforce and businesses that depend on them.”
“In industry after industry, huge companies are still giving customers terrible service – and AtoB is looking to change that for truck drivers. As one of the most common occupations in the United States, truck drivers deserve better. It is difficult to innovate on complex, established systems, and the rewards for the startups that succeed are enormous, says Roy Bahat, head of Bloomberg Beta.
“We partnered with AtoB because it’s clear that fleet owners and operators have been underserved for a long time, and AtoB’s leadership is passionate about fixing this pain point,” said Ross Fubini of XYZ Venture Capital. “AtoB has smartly and deliberately grown their business, positioning them to support fleet companies in the US and beyond.”
About AtoB
AtoB was founded in 2020 with the mission to transform the fleet industry’s financial management infrastructure. AtoB’s pioneering fintech payment platform provides drivers and fleet operators with easy to use financial products such as fleet cards with no fees; immediate direct deposit pay; and access to bank accounts and savings tools to provide ease of access and network efficiency. AtoB is a member of the World Economic Forum’s Global Innovators Community and is on Forbes’ Next Billion-Dollar Startup 2022 list. For more information, visit atob.com.
Contacts
Elizabeth Ashford
Disclaimer: This article was produced on behalf of Vignan Velivela by the Mediawire team.
