Koch Disruptive Technologies, the venture and growth equity arm of Koch Industries, is investing in autonomous business-to-business short-haul logistics with Gatik, a startup focused on logistics for the middle mile – the important step in the supply chain when goods leave the warehouse and head to retailers.
DETAILS: On Tuesday, Gatik announced a new $85 million Series B funding to scale up North America’s first autonomous logistics network for that middle mile, which KDT President Chase Koch pointed to as a specific area of “unprecedented disruption in the logistics industry.” The heavily oversubscribed round brings Gatik’s total amount raised to $114.5 million. Gatik announced its Series A fundraising last November.
RUBBER MEETS ROAD: Gatik CEO and co-founder Gautam Narang emphasized the company’s partnerships with major retailers and manufacturers as a key differentiator.
“With this financing, we are ideally positioned to commercialize our solution at scale,” Gautam said in the announcement.
That means Gatik can expand its team and customer base with its fleet of Class 3-6 multi-temperature Autonomous Box Trucks across new markets in North America.
THE BIG PICTURE: This disruption addressed by Gatik’s technology is being driven by explosive growth in ecommerce and demand for more efficient goods movement, Chase said.
“Gatik’s transformational autonomous technology and world-class team are defining the standard in B2B short-haul logistics by addressing the most prominent issues facing today’s supply chain,” Chase added. “We believe Gatik will be the first to commercialize autonomous technology at scale for the North American medium-duty trucking market.”
WHAT'S NEXT: Gatik also announced Tuesday that it has expanded customer deployments in Texas and opened a new autonomous trucking facility in Fort Worth. The company expects to add more than 500 new jobs in the Lone Star State by 2025, including operational, technical and business roles.
GO DEEPER: Koch’s investment in Gatik is the company’s latest venture in the autonomous logistics space. In 2020, KDT invested in Outrider’s autonomous yard operation system for logistics hubs, piloting the solution at Georgia-Pacific.