Liza Curcio-Rudy

North America

United States

Access Usage Gap

Credit

Digital Financial Services

Enabling Environment

Fintechs

MSME/SME Finance

Underserved Groups

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Press Release

Channel19

The United States relies on hundreds of thousands of refrigerated truck operators to ensure that vital goods, like vaccines and fresh produce, are delivered safely to consumers. <a href="https://www.trucking.org/economics-and-industry-data#:~:text=Number%20of%20Companies%3A,operate%2010%20or%20fewer%20trucks." target="_blank" rel="noopener noreferrer">Nearly 96 percent</a> of the trucking companies that power our supply chain manage a fleet with fewer than ten trucks, according to the American Trucking Association. While these small businesses are essential to the freight industry, they lack access to digital tools and financial services that can help them run more efficiently and grow.

This week, <a href="https://www.accion.org/channel19-picks-up-2-7-million-to-streamline-refrigerated-freight-trucking" target="_blank" rel="noopener noreferrer">we announced our investment in Channel19</a>, the first digital platform for refrigerated trucking companies, and our first investment in the US logistics industry. <a href="https://www.channel19.io/" target="_blank" rel="noopener noreferrer">Channel19</a> aims to help small truckers to strengthen their businesses by overcoming operational challenges and increasing their revenue. We’re thrilled to partner with Tony Singh, Duane Moore, and the rest of the Channel19 team as they create opportunities for small business owners to increase revenue, streamline operations, and access the financial services they need to grow their businesses.

We’re excited to invest in Channel19 as the platform:
<h3>Addresses pain points for small, refrigerated trucking businesses</h3>
The US trucking industry is highly fragmented, with nearly 96 percent of operators managing fewer than ten trucks. While larger trucking companies typically employ someone to search for, bid on, and book routes for their drivers, small companies often have an owner-operator who is trying to multitask. Channel19 streamlines the dispatch process by aggregating refrigerated freight opportunities found across hundreds of load boards, recommending the best routes for customers, and enabling them to book work digitally.

For refrigerated truckers, proper temperature management is equally vital. Channel19 is designed to help refrigerated truckers seamlessly manage their refrigeration unit and protect their cargo, which is usually their most expensive asset. By saving operators time that was previously spent on manual tasks, Channel19 allows them to instead focus on growing their businesses.
<h3>Provides MSMEs with access to well-designed, affordable financial services</h3>
Trucking is a capital-intensive industry. Coupled with high gas prices and a harsh freight recession, managing cash flow can be extremely difficult for these small businesses. Shippers typically offer 30-day payment terms, which is too long to wait for small trucking companies operating on thin margins. This has made it commonplace for truckers to use factoring companies, which typically charge two to five percent of the invoice value but layer on hidden fees and lock truckers into predatory long-term contracts. These contracts result in some customers paying up to ten percent of the invoice value to access the cash they need to operate. Channel19 accelerates cash flow for these companies through their simple, easy-to-use factoring product, which leverages transaction data on the platform to validate invoices and reduce the cost of accessing capital.
<h3>Reaches a new generation of truckers</h3>
<a href="https://www.census.gov/library/stories/2019/06/america-keeps-on-trucking.html" target="_blank" rel="noopener noreferrer">The median age for a truck driver</a> in the United States is 47 years old, which is five years older than the average American worker. As this population heads toward retirement and the shortage of drivers continues to grow, these roles are increasingly filled by Central American, Indian, and Eastern European immigrants. In Texas, the epicenter of US trucking, the number of immigrant drivers <a href="https://www.houstonchronicle.com/news/houston-texas/immigration/article/trucking-labor-shift-immigrants-houston-17774264.php" target="_blank" rel="noopener noreferrer">has nearly tripled since 2000.</a> According to a Houston-based resettlement agency, many of these newcomers get their footing in the industry by working for a friend or family member’s trucking business before starting their own. Channel19 is dedicated to reaching these immigrant entrepreneurs and providing them with a pathway to earn more money, save time, and accelerate cash flow.
<h3>Brings a team with deep industry experience</h3>
<a href="https://www.linkedin.com/in/tony-singh-3359b21" target="_blank" rel="noopener noreferrer">Tony Singh</a>, CEO and co-founder of Channel19, has been in and around the trucking industry his entire life. While growing up in Northern India, he was exposed to the inner workings of his family’s trucking business. After immigrating to the US, his family remained in the trucking industry, gaining experience in fleet operations, repairs, and other aspects of the sector. Tony’s first-hand exposure to the challenges that these small businesses face led him to build Channel19 alongside his co-founder, <a href="https://www.linkedin.com/in/duane1024" target="_blank" rel="noopener noreferrer">Duane Moore</a>. Duane, CTO of Channel19, was one of the first engineers at Clover and brings more than 20 years of computer engineering experience to the team.

Digital tools have the potential to transform and strengthen small businesses in the refrigerated freight sector. We’re proud to support Channel19’s journey to build a user-friendly platform that allows truck owners to make informed decisions about their business, alleviates operational pain points, increases their profitability, and provides embedded financial services.

Leading a digital evolution for refrigerated trucking businesses in the United States

<strong>Fremont, CA August 21, 2023:</strong> <a href="https://www.channel19.io/" target="_blank" rel="noopener noreferrer">Channel19</a>, a platform for refrigerated trucking companies in the U.S., announced that it has raised $2.7 million in pre-seed and seed funding, led by Augment Ventures with participation by Accion Venture Lab, TMV, Overton Venture Capital and Refashiond Ventures. Several Silicon Valley and freight tech industry angels also participated.

Channel19’s mission is to address the intricate operational inefficiencies that burden small refrigerated trucking businesses. The trucking industry in the U.S. is highly fragmented, with 95.7% of trucking companies having fewer than ten trucks. In addition, the average truck driver in the US is over 47 years old. As this population heads toward retirement, the shortage of drivers continues to grow. As a result, the number of foreign-born truck drivers has more than doubled since 2000, and in California, the second-largest trucking market, nearly half of all drivers are immigrants. Channel19 was co-founded by Tony Singh, who built the company to solve the challenges his family experienced working in the trucking industry in Northern India and then after immigrating to the U.S.

To cater to small truckers, especially those that might have less familiarity with digital tools, Channel19 developed an intuitive platform that optimizes load selection, scheduling, real-time tracking, document sharing, and invoicing to ensure the highest possible revenue yield for small trucking companies moving refrigerated freight. Channel19’s platform also offers efficient route planning that reduces unnecessary travel and limits empty return journeys, significantly reducing the environmental impact of refrigerated freight transportation.

"Channel19's vision is to empower refrigerated freight operators to make informed decisions that optimize their financial outcomes," explains Tony Singh. "Our platform alleviates the burden of searching for, bidding on, and booking freight by aggregating loads, eliminating manual steps, and layering on embedded financial services that enable customers to manage their entire business in one place. This enables smaller refrigerated trucking businesses to not just survive through economic downturns but thrive during the eventual economic boom cycle."

As Augment Ventures Founder and Managing Partner Sonali Vijayavargiya comments: “With low average load factors and an aging workforce, it is clear to us that the freight industry is ripe for massive disruption. We are investing in Channel19 to create a simpler and more efficient operating environment for the independent trucking industry. Tony's firsthand experience in witnessing the inefficiencies in trucking and clear passion make him the right leader to build a truly transformational platform.”

Amee Parbhoo, Managing Partner at Accion Venture Lab, said: “In addition to streamlining workflows for refrigerated trucking companies, Channel19 is providing customers with a simple and affordable way to accelerate cash flow. We’ve seen that without a solution like this, truckers instead turn to predatory, long-term contracts with companies that layer on hidden fees. We're excited to partner with Channel19 to bring fair, tailored financial services to the logistics sector.”

Channel19 is seeing early traction with its initial customer base adopting its technology and a steady inflow of new customer sign ups. As the trucking industry continues its digital evolution, Channel19 is primed to contribute to the refrigerated freight sector, providing a comprehensive, easy-to-use tool set that drives the industry forward.

<strong>Contact:</strong> Tony Singh for further inquiries (email: tony@channel19.io, phone: 530-400-0983)

<hr />

<h3>About Channel19</h3>
Channel19 is a startup digitizing the refrigerated trucking industry with a unified platform designed to optimize operations, increase profitability, and drive sustainability. Through its intelligent data aggregation, strategic planning capabilities, and comprehensive insights, Channel19 is redefining the operations of the refrigerated freight trucking business. For further information, visit <a href="https://www.channel19.io/" target="_blank" rel="noopener noreferrer">www.channel19.io</a>.
<h3>About Augment Ventures</h3>
Augment Ventures is an early-stage investor that invests across North America in diverse mission-driven founders who are building digital and data automation companies to transform traditional industries, creating new business models, and shifting us all toward a more productive and sustainable world. Augment actively works with its portfolio companies to develop new markets, build alliances, and hire talent. For further information, visit <a href="http://www.augmentventures.com" target="_blank" rel="noopener noreferrer">www.augmentventures.com</a>.
<h3>About Accion Venture Lab</h3>
Accion Venture Lab is a seed-stage investor that provides capital and extensive support to innovative fintech startups that improve the reach, quality, and affordability of financial services for the underserved and have the potential to scale. Venture Lab has invested in more than 60 early-stage startups that operate in 30 countries worldwide. Venture Lab is a part of Accion, a global nonprofit committed to creating a fair and inclusive economy, with a pioneering legacy in microfinance and fintech impact investing. Accion catalyzes financial service providers to deliver high-quality, affordable solutions at scale for the 1.8 billion people who are left out of – or poorly served by – the financial sector. For 60 years, Accion has helped tens of millions of people through our work with more than 200 partners in 63 countries. For further information, visit <a href="http://www.accion.org/venturelab" target="_blank" rel="noopener noreferrer">www.accion.org/venturelab</a>.

Channel19 Picks Up $2.7 Million to Streamline Refrigerated Freight Trucking

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Leading a digital evolution for refrigerated trucking businesses in the United States

Channel19 Picks Up $2.7 Million to Streamline Refrigerated Freight Trucking