Logistics Technology Market Update – June 2025

M&A and Capital Raising Activity Rebounds, Trade and Supply Chain Volatility Strengthens Logistics Technology Market Use Cases

Logistics Technology market merger and acquisition (M&A) and equity capital raising activity has picked up from 2023 and 2024 lows despite a continued freight recession and capital markets dislocation. Economic uncertainty and delays in anticipated Federal Reserve easing have continued to reinforce risk-averse investment attitudes, weighing on sector growth and equity financing activity. While M&A volume rose 14.8% year-over-year (YOY) in 2025, recent activity has been disproportionately propped up by distressed sales of early-stage companies that have struggled to raise additional growth capital. A sustained uptick in logistics technology transaction activity is overdue and is expected to accelerate in the long-term. Increasing complexities around trade policy and supply chains, continued growth of e-commerce, advances in artificial intelligence (AI), and logistics services becoming ever more integral to end-customer experiences will likely continue to drive a growing need for logistics technology investment.

Green-shoots have started to appear for logistics technology investors in 2025. However, the increase in activity is not broad-based. Promising up-starts pursuing seed or A rounds have been successful, but players who raised capital in 2020-2021 have difficulty raising follow up rounds. This dynamic is playing into the increase in M&A activity for otherwise cash strapped businesses.

Gordon MackayManaging Director, Capstone Partners

Sector Volatility Reinforces Need for Technology-Enabled Operational Efficiencies

By the end of 2024, sector participants were optimistic that improving Logistics and Freight industry conditions would drive accelerated logistics technology adoption. Unfortunately, hopes for a freight recovery have been pushed out further, weighing on sector profitability and slowing the adoption of much needed technologies. In terms of priorities, logistics managers’ have coveted technologies that create competitive advantages over peers, boost operational efficiencies, enhance visibility, and help manage supply chain risk. In May, 91% of logistics managers indicated that they expect supplier and material costs to rise and are gearing up to make significant changes to their supply chain strategies to address shifting U.S. trade policy and manage these rising costs, according to a 2025 PwC survey.¹ Further, 85% of logistics managers have already or plan on increasing their technology budgets to meet these rising challenges. Logistics technology adoption is expected to pick up as freight recession headwinds ease and revenue pressures subside. Low digital penetration has acted as a long-term tailwind to sector growth and M&A activity, with buyers and investors pursuing profitable, scalable targets that address key supply chain pain points and help manage rising complexities.

Distressed Transactions Buoy Logistics Technology Market M&A Deal Flow

Logistics Technology market M&A activity has accelerated in year to date (YTD) 2025 with volume at 31 transactions announced or completed, a 14.8% year-over-year (YOY) increase. To date, both sponsor-backed and new platform deal volumes have paced the prior year period after deal activity accelerated in the second half of 2024 (2H 2024). Similarly, strategic M&A activity has continued to accelerate YTD, with deal volumes up 66.7% and 25% YOY for public and private buyers, respectively. These gains have come on the heels of easing market conditions in late 2024 that encouraged strategic buyers to resume inorganic growth initiatives after a year of prioritizing internal cost control efforts. These late year market improvements were particularly beneficial to public buyers, with 2H 2024 deal volume rising by 14 deals YOY and by 10 transactions compared to 1H 2024.

The rise in sector M&A activity to date can be partially attributed to financially distressed companies seeking new ownership, as additional rounds of growth capital have been increasingly difficult to raise. Sector headwinds from persistent macroeconomic volatility, geopolitical uncertainty, and the freight recession have continued to erode equity financing interest across the sector, leaving some logistics technology startups struggling to stay afloat as new funding opportunities have declined. This environment has been particularly beneficial for strategic buyers looking to cheaply expand technology capabilities and product offerings through bolt on acquisitions—with strategic deal volume rising 36.4% YOY in YTD 2025. Notably, logistics technology provider and active sector acquiror, Descartes Systems Group (TSX:DSG) recently emphasized how similarly difficult market conditions seen during the 2008 recession ultimately benefited its inorganic growth strategy for the long-term. “…It wasn’t fun to go through it. But when I look back, I mean we picked up some of the best acquisitions at very good prices, [in the] coming three or four years because of that recession,” noted CEO, Edward Ryan, in the company’s Q4 earnings call.²

Strategic buyers will likely remain well-positioned in the near term to bolster existing operations and product offerings by continuing to pursue acquisitions of distressed targets. Of note, technology-backed drayage provider ContainerPort Group’s (CPG) parent company, World Group, acquired digital drayage marketplace startup, Dray Alliance (March 2025, undisclosed). Between 2019 and 2021, Dray Alliance successfully secured $30.2 million in equity financing but has been unable to secure new funds as sector volatility and subsequent revenue headwinds increasingly deterred new investments in the Logistics Technology market, according to reports from DC Velocity.^3,4 Pressures for Dray Alliance intensified by the end of 2022 as freight demand and rates began to drop off. Notably, the operator’s driver payments fell 26.8% in less than a year for select routes to the Port of Los Angeles, according to an October 2022 New York Times article.⁵ The vertical acquisition will bolster CPG’s drayage operations and service capabilities with enhanced visibility and automation through Dray Alliance’s digital drayage platform. The deal enhances CPG’s network and strengthens its position as the leading dray provider serving the Los Angeles/Long Beach, California Freight market, according to a deal press release.⁶

Long-Term Tailwinds Support Healthier Logistics Technology Transaction Activity

Tailwinds from increasingly complex supply chain operations and digital transformation demands have continued to bolster long-term outlook across the Logistics Technology market. Strategic and sponsor-backed buyers have continued to express interest in targets with next generation technology that can expand their product portfolio and service capabilities through bolt-on transactions. This long-term demand and need for digitalization in the logistics ecosystem is expected to continue driving M&A activity in the space for the foreseeable future, a trend that Capstone anticipates will continue accelerating as logistics managers resume software and technology investments as sector profitability eventually improves. Key sector transactions are detailed below.

• WiseTech Global Acquires E2open (May 2025, $2.1 Billion, 3.5x EV/Revenue, 9.7x EV/EBITDA) – In May 2025, Australian logistics software provider, WiseTech Global (ASX:WTC), entered into a binding agreement to acquire U.S.-based E2open (NYSE:ETWO) for an enterprise value of $2.1 billion, equivalent to 3.5x EV/Revenue and 9.7x EV/EBITDA. The acquisition of the supply chain management software-as-a-service (SaaS) provider at a $3.30 per share purchase price represents a 28% premium over E2open’s closing stock price as of May 23, 2025 and will be funded entirely by a new fully underwritten $3 billion syndicated debt facility, according to deal press releases.^7,8 WiseTech cited E2open’s complementary but distinct market reach, customer base, and product portfolio as key motivation for the deal, bringing with it a connected network of 500,000 enterprises and ~5,600 customers, including more than 250 blue chip customers. The deal builds upon WiseTech’s M&A-based product development and market expansion strategy in support of its goal to create a multi-sided marketplace connecting asset-based carriers, logistics providers, importers, exporters, shippers, and other supply chain operations.

“This transaction evolves WiseTech’s vision to be the operating system for global trade and logistics, [and] E2open will add a strong complementary product suite that extends the ecosystem, especially in adjacent areas of domestic logistics, carrier integration, global trade, and supply chain management, all of which benefit customers and creates cost efficiency and online connectivity between customer groups,” noted WiseTech interim CEO, Andrew Cartledge, in a market briefing call related to the deal.⁹

• The Descartes Systems Group Acquires 3GTMS (March 2025, $115 Million) – In March 2025, the Descartes Systems Group (TSX:DSG) acquired transportation management solutions (TMS) provider, 3GTMS (3G), for an enterprise value of $115 million. 3G’s TMS platform leverages cloud architecture, an extensive carrier network, and automated planning tools to provide shippers, third-party logistics (3PL) providers, and freight brokers with cost savings and improved operational efficiencies. Of note, Descartes cited its single-platform architecture that manages the entire transportation life cycle and reduces the need for multiple disjointed solutions, as a key motivator of the deal. The acquisition is expected to complement Descartes’ existing North American logistics solutions and build upon its inorganic growth strategy that has also included the recent acquisitions of Sellercloud (October 2024, $130.2 million) and Assure Assist (September 2024, $28.5 million).
• Triumph Financial to Acquire GreenScreens AI (February 2025, $160 Million) – Financial holding company, Triumph Financial (Nasdaq:TFIN), announced its acquisition of intelligent freight pricing solutions provider, GreenScreens AI, in February 2025 for an enterprise value of $160 million. GreenScreens AI’s software solution leverages machine learning to provide short-term freight pricing insights for customers’ planning and purchasing decisions. Prior to the deal, GreenScreens AI secured $5 million in Series A funding (November 2022) amid surging sector demand as investors sought solutions to address freight pricing volatility that accelerated during the pandemic. The acquisition also builds upon Triumph Financial’s recent acquisition of transportation performance intelligence software provider, Isometric Technologies (December 2024, $10 million). The deal is expected to close in the second quarter of 2025 and enhance Triumph Financial’s growing portfolio of freight intelligence solutions, according to a press release.¹⁰

Equity Capital Investments Target Key Supply Chain Pain Points

For three consecutive years, equity financing deal volume has declined amid demand weakness and prolonged freight recession pressure. To date in 2025, equity financing deal volume has fallen 29.7% to 265 transactions compared to 377 in YTD 2024. Consecutive years of declining equity financing investments have constrained sector startup’s growth ambitions, evidenced by the drop off in sector initial public offering (IPO) activity. From 2022 through YTD 2025, equity-backed IPO activity across the Logistics Technology market has declined 44.4% at 10 listings compared to 18 in 2021 alone. After financing rounds led to a lofty $3.8 billion post-money valuation (April 2022) for the digital freight brokerage unicorn, Convoy, the operator abandoned its IPO plans as freight demand and subsequently earnings began to plummet. The sticky low freight rate environment eventually forced Convoy to sell off its brokerage operations to Flexport (November 2023, undisclosed). As a result, investors have become increasingly selective—wary of overinflated valuations, sector volatility, and elusive profitability—when analyzing new investment opportunities in logistics technology startups.

Despite the pullback, investors have continued to selectively deploy capital to logistics technology players and solutions with established profitability, scalability potential, and the ability to address key supply chain pain points. Fueled by attractive long-term tailwinds including e-commerce growth, low digital penetration, and increasingly complex supply chain operations, equity capital invested rebounded 35.5% YOY in 2024 and has since kept climbing—with YTD 2025 capital invested up 84.4% YOY at $4.5 billion. Capital invested has largely consisted of smaller raises such as cross-border freight marketplace and load board startup Cargado’s $12 million Series A funding round led by LGVP (April 2025). However, larger raises at later stages have continued to materialize, particularly for AI-enabled startups like commercial trucking insurer, Nirvana Insurance, which secured $80 million in a Series C round led by General Catalyst for a post-money valuation of $850 million (March 2025).

Solutions that support cross-border operations, enhance visibility, and ease logistics management or are outfitted with next generation technology—like AI—have been a key focus for investors to date, particularly amid recent global trade policy volatility. Notably, end-to-end commerce enablement software and omnichannel fulfillment provider, Stord, raised $200 million of funding for a post-money valuation of $1.5 billion (May 2025). The capital raise included a $120 million debt facility led by Silicon Valley Bank (SVB) and ORIX USA, while the $80 million of Series E equity financing was led by Strike Capital. In addition to its strong revenue growth—up 10x since 2021—new funding has been supported by Stord’s attractive customer value proposition, innovative dual software and physical logistics offering, and exposure to long-term e-commerce growth tailwinds, according to a deal press release.¹¹ Stord plans to use the funding to further scale its infrastructure and software suite, integrate AI-driven capabilities, and pursue inorganic growth opportunities, which includes the recent acquisition of UPS (NYSE:UPS) subsidiary and fulfillment network, Ware2Go (May 2025, undisclosed).

Looking ahead, ongoing economic uncertainty while the Federal Reserve prioritizes combating inflation over restoring growth in the economy will likely remain an overhang to growth capital formation in the near-term. However, as economic growth eventually returns, excess capacity moderates, and balance sheet pressure eases, strong underlying investor interest in the space will likely rejuvenate equity capital formation in the Logistics Technology market. Key recent equity financing transactions are highlighted below.

• Augment Raises $25 Million in Seed Funding (March 2025) – AI-enabled logistics platform provider, Augment, raised $25 million in seed funding, led by venture capital firm 8VC with participation from Applico Capital (March 2025). Augment was created by Harish Abbott, who previously co-founded the fulfillment insights platform Deliverr, which sold to Shopify (NYSE:SHOP) for $2.1 billion in May 2022. The platform’s flagship product, Augie, leverages AI language models and integrates with an organization’s TMS and communication platform to help manage and automate complex, tedious, and repetitive logistics tasks. The funding will be used to accelerate Augie’s development and expand its engineering and customer success teams in San Francisco, Toronto, and Chicago. Additionally, Justin Hall, who previously worked in-house at 8VC, Primo Logistics, YRC, and GlobalTranz has joined Augment as its new Chief Commercial Officer to support its growth strategy and partnership opportunities.
• GenLogs Secures $14.6 Million in Series A Financing (February 2025) – In February 2025, freight intelligence platform developer, GenLogs, secured $14.6 million in Series A led by existing investor Venrock and new investor HOF Capital, bringing its total funding to $21 million to date. Follow-on investors Autotech Ventures, Heartland Ventures, Plug and Play Tech Center, Steel Atlas, Titletown Tech, and Venture 53 also participated in the funding round. GenLogs’ freight insights technology uses roadside sensors and cameras tracking truck and trailer assets for data collection to provide insights into trusted carrier networks, operational efficiency enhancements, and fraud risks. The company plans to use the funding to expand its insights capabilities by accelerating its sensor installations at key ports, to better track end-to-end freight flows.

While uncertainty surrounding the recent global trade policy has further pushed out a recovery in freight rates and subsequent technology adoption, this volatility has continued to reinforce long-term tailwinds driving both M&A and growth capital investment activity across the sector. Low digital penetration and increasingly complex supply chain networks have continued to make logistics technology providers attractive long-term opportunities for buyers and growth capital investors.

To discuss rising supply chain complexity, provide an update on your business, or learn about Capstone’s wide range of advisory services and Logistics Technology market knowledge, please contact us.

Izzy Jack, Associate, was the lead Market Intelligence contributor to this article.

Endnotes

1. PwC, “PwC’s 2025 Digital Trends in Operations Survey,” https://www.pwc.com/us/en/services/consulting/business-transformation/digital-supply-chain-survey.html, accessed May 12, 2025.

2. Descartes Systems Group, “Descartes Systems Group Fourth Quarter Fiscal 2025 Financial Results,” https://edge.media-server.com/mmc/p/fssv8aok/, accessed May 12, 2025.

3. DC Velocity, “Dray Alliance to Transform Container Shipping at US Ports with $40 million Series B Funding,” https://www.dcvelocity.com/articles/53251-dray-alliance-to-transform-container-shipping-at-us-ports-with-40-million-series-b-funding, accessed May 27, 2025.

4. DC Velocity, “Dray Alliance raises $10.2 million in funding round,” https://www.dcvelocity.com/articles/45251-dray-alliance-raises-102-million-in-funding-round, accessed May 27, 2025.

5. The New York Times, “No Jobs Available: The Feast or Famine Careers of America’s Port Drivers,” https://www.nytimes.com/2022/10/28/business/supply-chain-shipping-jobs.html, accessed May 12, 2025.

6. World Group, “World Group Acquires Dray Alliance Inc., Strengthens ContainerPort Group’s Tech-Driven Drayage Capabilities,” https://www.worldshipping.com/2025/03/, accessed May 12, 2025.

7. E2open, “E2open Announces Acquisition by WiseTech Global, Concluding Strategic Review,” https://www.e2open.com/news/press-releases/e2open-announces-acquisition-by-wisetech-global-concluding-strategic-review/, accessed June 2, 2025.

8. WiseTech Global, “WiseTech Global Announces Strategic Acquisition of E2open,” https://www.wisetechglobal.com/news/wisetech-global-announces-strategic-acquisition-of-e2open/, accessed June 2, 2025.

9. WiseTech Global, “Market Briefing – 26 May 2025,” https://www.wisetechglobal.com/media/tvgl1ggg/wtc-e2open-market-briefing-script.pdf, accessed June 2, 2025.

10. Triumph Financial, “Triumph Financial to Acquire Greenscreens.ai,” https://www.tfin.com/news-releases/news-release-details/triumph-financial-acquire-greenscreensai, accessed May 12, 2025.

11. Stord, “Stord Raises $200M+ at a $1.5B Valuation to Power Fast, Seamless E-Commerce Experiences at Scale,” https://www.stord.com/newsroom/stord-raises-$200-million-for-fast-seamless-ecommerce-experiences, accessed June 3, 2025