We are very excited to announce an investment in Upwell out of our new Mobility Fund II.
Automotive Ventures is dedicated to identifying and supporting innovative solutions that address critical challenges within the transportation and logistics sectors. Today, we are excited to announce our investment in Upwell, a payment automation platform that has recently secured a $6.5 million seed funding round led by Vertical Venture Partners.
The Problem
The logistics industry is often burdened by financial inefficiencies, particularly in accounts receivable and billing processes. Traditional manual methods are not only time-consuming but also prone to errors, leading to delayed payments and strained business relationships.
Managing accounts receivable in logistics is fraught with inefficiencies. Companies juggle multiple systems, manually enter data, and deal with invoice exceptions—all of which contribute to delayed payments, increased operational costs, and strained business relationships.
The logistics sector, responsible for over $800 billion in annual freight spend, relies heavily on outdated processes that slow down cash flow and create unnecessary administrative burdens.
Industry Challenges Include:
- Multiple Touchpoints: Freight management involves numerous systems—TMS, payment portals, and accounting platforms—which increases complexity.
- Manual Data Entry: Current processes are prone to errors and inefficiencies.
- Invoice Disputes: Exception handling is time-consuming and costly.
- Legacy Systems: The industry has been slow to adopt automation, leaving AR teams struggling with outdated workflows.
The Upwell Solution: AI-Driven AR Automation
Upwell is tackling these problems head-on with an AI-powered AR automation platform built specifically for logistics. Upwell automates the billing process, thereby streamlining operations and enhancing financial accuracy.
Upwell streamlines the entire order-to-cash (O2C) process for logistics companies by automating invoice auditing, payment processing, and collections. The platform seamlessly integrates with Transportation Management Systems (TMS) and existing financial tools, offering:
- Automated Pre-Invoice Auditing: Reduces invoice disputes and improves accuracy.
- Predictive AR Dashboards: Provides real-time insights to optimize cash flow.
- Automated Payment Reminders: Ensures timely collections and minimizes past-due balances.
- Payment Processing & Reconciliation: Supports ACH, credit cards, and other payment options.
- AI-Powered Efficiency: Reduces operational expenses by 50-100% per AR team member.
By automating accounts receivable workflows, Upwell enables logistics businesses to improve cash flow, decrease Days Sales Outstanding (DSOs), and reduce overhead.
The Investment Opportunity
Automotive Ventures’ Mobility Fund II invested in Upwell’s $6.5 million Seed round, led by Vertical Venture Partners. Other notable investors include Plug and Play Ventures, Black Dog Ventures, Neverlift Ventures, and previous investors NVP, SaaS Ventures, Rise of the Rest, Invest Nebraska and Motivate Ventures. The company has raised $10 million since 2023.
Investment Rationale
Our decision to invest was driven by several key factors:
- A Massive Market Opportunity: With a total addressable market (TAM) exceeding $10 billion, Upwell is positioned to capitalize on the growing demand for logistics automation.
- A Strong Business Model: Upwell operates on a B2B SaaS subscription model, generating predictable revenue while offering additional transaction-based services.
- A Proven Leadership Team: Upwell’s founding team, led by CEO and Co-Founder Charley Dehoney, and Co-Founder/CTO Aaron Freeman, brings extensive experience in logistics, AI, and financial automation.
Wrapping Up
We believe that Upwell is a perfect fit for the investment thesis of our new Mobility Fund II.
By leveraging artificial intelligence to automate financial workflows, Upwell is driving efficiency in a critical, yet overlooked, segment of logistics. This investment underscores our commitment to backing companies that modernize outdated processes through cutting-edge technology.
With its AI-driven approach to logistics finance, Upwell has the potential to revolutionize logistics billing through automation. We are excited to support their journey and look forward to the company’s continued success.
For more information on Upwell, visit www.upwell.com.
