FarEye Helps Enterprises Delight Their Consumers at Every Step of the Journey

By Gopi Vaddi, General Partner at TCV

After perusing slick digital shopfronts for hours, checking AI-enabled online catalogs, and paying through seamless single-click checkouts, you may eventually be rewarded with ‘your delivery should arrive in 5-10 working days’ and left to pray that the shiny new gizmo you ordered will arrive in one piece. Sound familiar? For all the innovation and investment across most steps of the online purchasing journey, the actual delivery experience has been largely neglected. Yet, the surge in remote purchasing shows no signs of abating and consumers are demanding faster, better, and cheaper deliveries. This has placed the status quo under immense strain and the need for new solutions to help companies navigate this complexity today is greater than ever.

A New Frontier for Innovation in E-Commerce Enablement

E-commerce enablement has been a key investment theme for TCV, and we have made multiple investments across each step of the value chain. In early 2019, we invested in RELEX Solutions (Helsinki, Finland) which provides an AI-driven platform helping global retailers forecast demand and prepare their supply chain to execute against it. In 2020, we backed Spryker (Berlin, Germany) which helps enterprises build beautiful digital commerce platforms for B2B, B2C, and marketplaces. We also invested in Mollie (Amsterdam, Netherlands) which provides a seamless, easy-to-integrate online payments solution for merchants across Europe. Another recent investment is Trulioo (Vancouver, Canada) which provides seamless know-your-customer (KYC), and know-your-business (KYB) verification checks globally, enabling smooth onboarding of merchants and consumers onto online marketplaces and fintech platforms. Paradoxically, while the e-commerce experience may appear increasingly effortless for consumers, the underlying technology landscape has become increasingly sophisticated and complex.

Following our investments upstream in the ecommerce value chain, we cast our eye further down, identifying logistics as the natural next step. Within this untapped, vast market, last-mile delivery from a fulfilment center to a delivery endpoint like a consumer home has always been the most operationally complex and resource-intensive leg of the journey, absorbing nearly 50% of total logistics dollars spend, driven by inherent lack of economies of scale (disparate drop-off points) and its on-demand nature. Complexity has also compounded due to new delivery and fulfilment modes like micro-fulfilment centers, curb-side pick-up, etc. which strain already razor-thin margins for retailers and carriers alike. Even Amazon, the most sophisticated logistics machine in the world, has not been spared — as a percentage of retail-related sales, Amazon’s cost of fulfilment/shipping grew from ~16% to 32% between 2010-19. On the end-consumer front, delivery experiences have become a critical driver of satisfaction and repeat purchases, with delivery constituting the only physical touchpoint for online brands with their customers. In fact, 55% of US consumers have bought goods from one retailer over another because they provided more delivery options[1]. Throw all of the above in the mix and you have a market that is ripe for disruption. Enter FarEye – a next-generation intelligent software platform that helps enterprises to orchestrate all of their delivery logistics requirements.

We were thrilled to recently announce our investment in FarEye. Founded in India in 2009 by Kushal Nahata (CEO), Gautam Kumar (COO), and Gaurav Srivastava (CTO), the trio started their journey as logistics consultants, before settling on their strategy of building a software platform that would help companies navigate the immense complexities of managing last-mile deliveries. Having spent several years developing the product in India and South-East Asia, where delivery logistics challenges are even more pronounced than in Western economies, FarEye relocated headquarters to Chicago and moved towards global expansion, addressing the vast demand across Europe and the U.S.

Compelling ROI and an Enormous Market Opportunity

We first came to know FarEye through its superlative customer feedback and enormous ROI generated for customers – 22% improvement in first-attempt deliveries, two times improvement in courier satisfaction, and 24% increase in on-time deliveries all while providing complete visibility across the entire logistics operations. Spurred by these reviews, we got in touch with Kushal and were blown away by the depth of the platform as well as Kushal’s strategic and product vision.

The FarEye platform provides an incredible range of end-to-end functionality today — all deployed on fully multi-tenant, cloud-native infrastructure — that benefits retailers, carriers, manufacturers, and end consumers alike. Shippers and carriers benefit from automated order allocation and dispatching, real-time dynamic routing, loop optimization and electronic proof of delivery; their customers get slot-based & flexible delivery scheduling, automated alerts and notifications, the ability to real-time track their deliveries, and 24/7 chatbot-based customer support. FarEye also empowers enterprises with the latest advances in real-time tracking and tracing, ETA prediction based on real-time constraints such as traffic bottlenecks, and control-tower visibility of enterprise delivery activity.

At the heart of the FarEye platform is a low-code BPM engine that allows users to rapidly build delivery workflows that can be customized to meet the demands of a particular industry and customer. Customers today span hot-food delivery, pharmaceutical, packaged goods, housewares, industrial equipment, and more. FarEye even counts some of the largest global carriers among its clients. FarEye Delight has helped the company to quickly expand its existing customer base which increasingly rolls out the platform across new geographies and business units while growing its functionality with net retention that is best-in-class.

As e-commerce and broader home-delivery become the new normal, retailers across the world are racing to adapt, while those that do not face the risk of quickly falling behind. For TCV, FarEye is an excellent fit with our overarching strategy of investing early in what we believe to be the franchise technology companies of the future – no matter where they are founded. FarEye joins Cognite, Trulioo, Redis Labs, Revolut, Relex, Nubank, Klarna, Mambu, Mollie, Spryker, and Dream Sports among recent investments made outside the U.S. Based on our experience investing in many other global leaders that were once young growth-stage companies, we believe FarEye has the technology, talent, expertise, and strong track record to become a truly generational software business of the future.

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The views and opinions expressed are those of the author and do not necessarily reflect those of TCMI, Inc. or its affiliates (“TCV”). TCV has not verified the accuracy of any of the data or statements by the author and disclaims any responsibility therefor. This blog post is not an offer to sell or the solicitation of an offer to purchase an interest in any private fund managed or sponsored by TCV or any of the securities of any company discussed. The TCV portfolio companies identified above are not necessarily representative of all TCV investments, and no assumption should be made that the investments identified were or will be profitable. For a complete list of TCV investments, please visit www.tcv.com/all-companies/. For additional important disclaimers regarding this interview and blog post, please see “Informational Purposes Only” in the Terms of Use for TCV’s website, available at http://www.tcv.com/terms-of-use/.


[1] MetaPack Global eCommerce Consumer Report, 2020


FarEye Announces $100 Million Series E Round Led by TCV and Dragoneer

LONDON, May 25, 2021 /PRNewswire/ — FarEye, a leading end-to-end, global delivery management platform, has announced a USD 100 million Series E round led by TCV and Dragoneer Investment Group. Existing investors Eight Roads Ventures, Fundamentum and Honeywell also participated in the round. The funds will be used to accelerate the company’s mission of empowering brands to provide Amazon Prime-like delivery experiences and redefining how products are delivered across diverse logistics networks. FarEye will further focus on expanding its software platform capabilities, drive European and North American expansion, and continue to attract world-class talent. As part of the transaction, Gopi Vaddi, General Partner at TCV, will join FarEye’s board of directors.  

Founded in the year 2013 by Kushal Nahata, Gaurav Srivastava, & Gautam Kumar, FarEye is addressing a multi billion dollar delivery management market that continues to show double digit year on year growth. 

“We are very proud to have TCV and Dragoneer join our established investors to support our progress in becoming a global leader in delivery management,” Kushal Nahata, CEO and co-founder of FarEye, said. “The funding is very timely for the delivery and logistics sector as we have seen consumers spending $861 billion online with U.S. retailers in 2020, up 44% from $598 billion in 2019. The growth and the digital transformation in the logistics sector has created an opportunity for software platforms like FarEye to provide a superior customer experience. Our ambition is to enable thousands of businesses to provide Amazon-Prime-like delivery experience, and we aim to drive innovations that re-imagine how deliveries are being managed globally,” added Nahata.

FarEye’s intelligent & sophisticated platform is used by brands to launch and champion multiple delivery models like same-day, next-day, on-demand, and curbside from multiple inventory locations. More specifically, FarEye enables enterprise to:

  • Manage the end-to-end process of delivering goods or services to consumer and enterprise customers across both 3rd party and in-house fleet models
  • Provide end-customers with a positive delivery experience, all while significantly lowering logistics costs and giving unparalleled visibility and control across the entire process
  • Leverage a highly modular, cloud-native and low-code platform, which allows clients to build individualized workflows to suit their unique delivery requirements while ensuring the fastest time to value
  • Handle enterprise-scale volumes and compliance requirements

FarEye currently serves global enterprises across retailers, manufacturers and third-party logistics providers & carriers, including DHL ecommerce, Amway, Dominos, Walmart, Posti, Gordon Foods, UPS and more.

The company’s platform processes over 100 million transactions each month, supports more than 25,000 drivers, and is integrated into a network of over two million vehicles. FarEye’s growth has accelerated over the last 12 months with particularly strong traction in Europe and North America. These markets collectively comprise over half of revenues and have grown nearly three times in the same period.

FarEye was recently recognized by Gartner in their inaugural Magic Quadrant for Real-Time Transportation Visibility Platforms.

To support continued expansion, FarEye has also hired a number of senior executives over the last year including a new CRO, Amit Bagga (formerly President of APAC at BlueYonder and strategic sales leader at Oracle), and a new CPO, Suvrat Joshi (former executive at Dropbox, Amazon, Facebook, Microsoft).

Gopi Vaddi, General Partner at TCV, said: “The logistics and supply chain industry is going through a long awaited software-led creative disruption, led by emerging leaders like FarEye that provide multi-tenant SaaS platforms with low code configuration to enhance visibility to the enterprise and deliver superlative last mile experiences for the end consumer. We, at TCV, are pleased to partner with Kushal, Gaurav,  Gautam and the entire management team. We have been impressed with FarEye’s platform capabilities and their long-term vision as a key enabler for digital transformation in logistics.”

“FarEye’s leading delivery management platform provides impressive visibility and control across the supply chain, which has never been more critical for retailers, manufacturers and 3PLs,” said Eric Jones, Partner at Dragoneer Investment Group. “We look forward to partnering with FarEye as they continue to redefine how products are delivered across diverse logistics networks and expand their footprint in Europe and North America.”

About FarEye: FarEye’s Intelligent Delivery Management Platform is making the delivery experience better for everyone. FarEye enables enterprises to deliver at reduced cost with a superior customer experience.

About TCV: Founded in 1995, TCV was established with a clear vision: to capture opportunities in the technology market through a specialized and consistent focus on investing in high-growth companies.

About Dragoneer Investment Group: Dragoneer is a growth-oriented investment firm with over $17 billion in long-duration capital from many of the world’s leading endowments, foundations, sovereign wealth funds, and family offices.

Media Contacts

FarEye
Komal Puri
komal.puri@getfareye.com

TCV
Katja Gagen
kgagen@tcv.com
+1 415 690 6689