We are very excited to announce that DHL Resilience360 has secured a $21 million equity commitment from DC based venture capital group Columbia Capital, who have a long and successful history of investing in and scaling high growth and disruptive technology companies. “Supply chain technology and analytics have huge potential to increase supply chain efficiency and create value,” says John Siegel, a partner at Columbia Capital. “We spent significant time meeting with many companies that are addressing this opportunity and believe that Resilience360 has very unique capabilities and potential.”
This investment will provide us with the ability to enhance product development, accelerate growth and continue our global expansion. Resilience360 will still remain an integral part of the DHL service offering and will now have “the opportunity to significantly enhance its capabilities, particularly in data analytics and accelerate the growth of the platform and provide an even better service offering to our customers,” stated Katja Busch, DHL’s Chief Commercial Officer.
Tobias Larsson will continue to lead Resilience360 as CEO. “The investment allows us to continue making product development our top priority and to grow the business faster in collaboration with DHL’s business units around the globe,” he says. “We will be able to apply more advanced analytics to the vast quantities of data that Resilience360 now collects to develop predictive and proscriptive insights that will help customers achieve faster and more accurate decision making in their supply chains and better prepare and respond to potential disruptions.”
Tobias, you´ve been there from the very start of Resilience360. How did the idea come about?
We got the very first idea at the DHL Technology Conference in Frankfurt in 2011. Customers mentioned that they couldn’t handle the aftermath of the Japan earthquake, with the tsunami and nuclear meltdown that occurred on March 11 that year. They lacked visibility of their supply chains and intelligence on the impact of the natural disaster. Most industries there have key suppliers along multiple tiers of the supply chain.
In subsequent customer interviews we confirmed that there were no good tools offering multi-tier supply chain mappings and shipment visibility connected with risk intelligence. We saw that we could help and that DHL was in a perfect position to develop a capability in this space.
Why did DPDHL partner with Columbia Capital on Resilience360 and what does the investment look like?
Columbia Capital, a Washington, DC-based venture capital group, has a long history of investing in and scaling high growth and disruptive technology companies including emerging technologies like AI, IoT and Maching Learning. Columbia Capital’s team is investing $21 million US and will take an active role in pursuing growth opportunities for Resilience360. The investment allows us to get the best of both worlds: access to the most extensive logistics network in the world and valuable experience from Columbia Capital in building and supporting disruptive technology companies. Columbia Capital distinguishes itself by patiently understanding and researching shifts in technology and industries and then investing through multiple stages in companies positioned to grow as a result of these disruptions. This makes them an ideal partner for this opportunity to scale R360.
How is Resilience360 planning to use this investment?
Resilience360 has always had a very customer-centric approach and has developed many features over the years as a result of customer feedback. The investment will allow R360 to further develop its solution by investing in new customer-centric capabilities, and strengthen our position as an end-to-end supply chain risk and visibility platform that helps procurement, transportation, logistics, business continuity and risk management professionals make and keep their supply chains resilient.
What does this investment say about internal startups within larger companies?
It says that not all start ups are created equal. Often times we hear about investments being made in stand alone start ups and we’ve seen great successes there but also considerable risk. One of the many advantages of investing in a internal start up within a global company like DPDHL is the stability, credibility and infrastructure that is already in place to promote a better environment for success in the short and long term.
Is the product still primarily owned by DHL and what happens with customer data?
Yes. Deutsche Post DHL remains the majority owner and will continue to support growing the business through its extensive network within both the sales and operational network. Your data will continue to be owned by Resilience360 own legal entity, so in this sense nothing changes for you. This means that any customer data shared with Resilience360 will continue to be governed by the terms & conditions agreed in customer agreements. We are strongly committed to protecting the data that is entrusted to us. It is the core of our business and our number one priority to you our customer.
Will Deutsche Post DHL continue to invest in Resilience360 if required?
DPDHL remains the majority owner and will continue to be engaged in the business through the Board and in supporting areas such as sales, product development, risk intelligence and data analytics. Resilience360 will continue to have access to all data that has been available as a fully owned entity of DPDHL
A heartfelt thank you to all of our customers and we look forward to continuing to provide you with the very best supply chain risk management solution in the world. My door is always open so feel free to reach out with any questions that you may have.
CEO and Founder, DHL Resilience360