The Algorithm People, developer of pay-as-you-go route optimisation platform My Transport Planner, has secured $2.2m (£1.6m) of funding from a consortium of tech investors led by former Sage chief executive Stephen Kelly.
It said the cash injection will allow it to accelerate plans for UK and international growth and focus on the opportunity created by the world’s race to Net Zero.
Established in 2018, The Algorithm People focuses on solutions for fleet modernisation, enabling firms to operate more efficiently, while also effectively transitioning to electric and other low emission vehicles.
The My Transport Planner software uses algorithms to calculate the most efficient routes and schedules for vehicles engaged in deliveries, collections and site visits.
This enables users to purchase credits and optimise their vehicles on an on-demand basis, making the investment in the technology self-funding, as the cost of each credit is less than the savings the technology generates.
Designed for companies engaged in multi-stop activities such as couriers, home delivery and last mile logistics, the platform is proven to reduce total fleet mileage and costs by up to 30%.
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“The Algorithm People has huge potential for global market leadership," explained Kelly. "The company’s technology sits at the nexus of AI, machine learning, and decarbonisation of transport, which helps fleets and organisations meet their net zero targets.”
The company has also developed a Decarbonisation Road Map, enabling fleet managers to make evidence-based decisions on where, when, and how to deploy electric vehicles (EVs) and where infrastructure should ideally be located.
MD Sarah Ferguson added: “Governments around the globe are driving the switch to EVs, while cities put in place plans to improve air quality and corporations aim for increasingly ambitious emissions reduction targets. Our solutions enable fleets to meet these challenges as we transition to smarter logistics and a greener economy."
The consortium also includes Dr Steve Garnett, who was part of the founder executive management team of three turbo growth software companies – Oracle Corporation, Siebel Systems, and Salesforce.com. He is joined by Oliver Hemsley, the founder and chief executive of Numis Securities, along with Craig Probert, Andy Maclachlan and Mike Townend who bring key sector experience and industry knowledge.
Colin Ferguson, chief executive of The Algorithm People, said: “Securing experienced tech investors with a proven track record of success underlines how far we have come in a short space of time. With their expertise, along with an injection of funds, we can exploit our first mover opportunity in this high growth sector.”
The new investment follows start-up funding via the North-East Venture Fund (NEVF), supported by the European Regional Development Fund and managed by Mercia, in addition to subsequent investment by Maven Capital Partners, who are fully supportive of the new investment.
Alan Robertson, investment director at Maven said: “The Algorithm People’s solution will play a supporting role in the net-zero agenda and help clients in their transition to electrification. This latest investment comes at an important time for the company, given the increased need for last mile logistics. We welcome the involvement of the experienced new investor group and, alongside Mercia, look forward to working with them to further support the business."
