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Tech Topics In This Article: startup funding, Atlanta startups, logistics
Carpool Logistics is the latest Atlanta startup to successfully raise a Series A funding round.
The startup, founded in 2021 and led by founder and CEO Michael Malakhov, announced today it had closed a $12 million Series A round of funding led by Boston-based Wavecrest Growth Partners. CarMax, Impel founders Devin Daly and Michael Quigley, and automotive industry veteran David Metter also joined the round.
Carpool Logistics raised a $3.5 million seed round from Atlanta Ventures and Overline Ventures in 2022.
Malakhov told Hypepotamus Wavecrest, which has automotive-focused startups like Cardata and Impel in its portfolio, initially reached out to Carpool Logistics in 2024. CarMax started as a pilot customer, using Carpool Logistics’ platform to help with their car auction business. This allowed Carpool Logistics to start building out their national presence and expand beyond their Southeastern roots, Malakhov added.
Carpool Logistics originally started the fundraising process last year, but paused because they wanted to “price in” the significant growth they were seeing.
The funding will be used to enhance Carpool’s technology, expand its product development, and scale marketing and customer acquisition efforts across new markets, according to a press release.
“The vehicle logistics industry is rapidly evolving, and Carpool is at the forefront of this transformation,” said Deepak Sindwani, Managing Partner at Wavecrest Growth Partners. “Our firm and extended team have a long history investing in the automotive industry, and Carpool’s purpose-built technology platform and marketplace and uniquely experienced leadership team are clearly differentiated. We believe Carpool is well-positioned to become the category leader, and we are excited to partner with them to accelerate their next phase of growth.”
Carpool’s Next Move
To date, Carpool Logistics has grown its customer base to over 1,800 clients, which is a mix of auto auctions, dealerships, manufacturers, and fleets. The platform has been used to ship over 150,000 vehicles.
When Hypepotamus first caught up with Carpool Logistics in 2022, Malakhov saw a big opportunity to bring updated technology and logistics capabilities to the multi-billion dollar vehicle shipping industry.
Following the funding round, Malakhov said that the team will be focused on expanding to help other automotive verticals ship vehicles. Beyond auctions, he wants to grow customers in the dealerships and OEM (original equipment manufacturing) segments.
The team is currently made up of 50 full-time employees. While the team is spread across three continents, a good majority of Carpool Logistics employees are working out of Atlanta Tech Village – Buckhead.
Carpool Logistics is one of several local startups serving the automotive industry. Others to note include Spiffy (North Carolina-based on-demand car wash and detailing service), Flux Hybrids (hybrid conversion startup in North Carolina), Carpool Logistics, Gas Valet, Flexdrive, FIXD (Atlanta-based car maintenance app), and Carputty (InsurTech in the car space).
