Rubicon Global has just received a $50 million strategic investment from Mexican private equity fund Promecap to continue to expand in the U.S. market and eventually open operations in Mexico. The deal values Rubicon at more than $1 billion, according to Nate Morris, the company’s co-founder and CEO. Last year it generated more than $300 million in revenues but has yet to post a profit.
The business is seen as a real disruptor due to its use of technology and is building traction with SME businesses and waste companies alike. Akin in many ways to a traditional waste broker, its ability to rapidly scale is seen to be its key differentiator and what has driven its value.
Founded nine years ago by Morris and a childhood friend in Louisville, Rubicon Global caught the eye of investors including Salesforce CEO Marc Benioff and Uber founding CTO Oscar Salazar, as well as Goldman Sachs and Wellington Management. In January, the company announced a $50 million investment by French multinational Suez Environment. Rubicon claims it can save clients up to 30 percent. Rubicon generates revenue via a monthly and annual subscription fee it charges for haulers to use the app. (In addition to helping start-ups land business, the app can source discounted fuel, tire insurance, and auto parts, and navigate the quickest routes under various weather conditions.) The company has grown to work with clients including 7-Eleven and Wegmans and more than 5,500 independent haulers.