Flexport

Flexport Inc. has emerged as one of the most innovative and technology-driven players in the global freight forwarding and supply chain management industry since its founding in 2013. What brothers Ryan and David Petersen started as a mission to bring transparency and efficiency to international shipping has evolved into a multinational corporation with annual revenues exceeding $2.1 billion (2024) and thousands of employees worldwide, serving platforms and retailers including Shopify, Walmart, and Shein.

The company's journey from Y Combinator startup in 2014 to an $8 billion valuation at its 2022 Series E peak exemplifies both the promise and challenges of venture-backed logistics disruption. Flexport has raised an impressive $2.7 billion across 19 funding rounds from prominent investors including Founders Fund, Shopify, Andreessen Horowitz, and SoftBank Vision Fund. However, the company's path has been marked by significant turbulence, including a dramatic leadership transition in 2023 when founder Ryan Petersen ousted CEO Dave Clark (former Amazon executive) after just one year and resumed the CEO role himself, accompanied by extensive restructuring and layoffs.

Flexport's core value proposition centers on its proprietary technology platform that provides SKU-level visibility from origin to port across ocean freight, air freight, trucking, warehousing, customs brokerage, and trade financing. Unlike traditional freight forwarders that often operate with opaque pricing and limited visibility, Flexport's digital-first approach enables customers to track shipments in real-time, access detailed analytics, and make data-driven supply chain decisions. The platform serves both small businesses seeking simplified international shipping and large enterprises requiring sophisticated multi-modal logistics orchestration.

The company's strategic evolution has included both organic product development and acquisitions. In November 2023, Flexport purchased the assets of Convoy, a former trucking software company previously valued at over $1 billion, adding domestic trucking capabilities to its global freight forwarding services. More significantly, Shopify sold its logistics business to Flexport in May 2023 in exchange for 13% equity, followed by a $260 million convertible note investment in January 2024. This partnership positions Flexport as a critical logistics partner for e-commerce merchants on Shopify's platform.

Despite impressive revenue growth—up 31% to $2.1 billion in 2024 from $1.6 billion in 2023—Flexport has struggled to achieve profitability. The company missed its profitability target at the end of 2024 due to weaker-than-expected demand for e-commerce fulfillment and distribution services. However, Sacra estimates Flexport projects exiting 2025 with approximately $100 million in EBITDA, suggesting approaching profitability. The company secured a major win in April 2024 by becoming Shein's preferred logistics partner for smaller merchants on the fast-fashion giant's U.S. marketplace, demonstrating continued success in landing high-profile clients.

As Flexport navigates post-hypergrowth maturation, founder-CEO Ryan Petersen (who also joined Founders Fund as a venture partner in 2023) faces the challenge of balancing growth ambitions with financial discipline. Trading at a $2.5 billion valuation in secondary markets as of May 2025—significantly below its 2022 peak—Flexport must prove its technology-enabled approach to freight forwarding can generate sustainable profitability at scale. With 2025 revenue projected to continue growing and EBITDA targets within reach, the company stands at a critical juncture in demonstrating that digital innovation can fundamentally reshape the traditional logistics industry.