Magaya: At the Forefront of a Digital Renaissance in Freight

Magaya’s modern, data-driven logistics software platform helps freight forwarders, 3PLs and other logistics service providers optimize every step of their operations from origin to destination.

LLR invested in Magaya in April 2019, when the company’s reach extended to more than 1,600 customers of all sizes operating global shipping routes across more than 75 countries. Magaya’s founders recognized that the supply chain market was on the verge of extraordinary digital advances, but the company wasn’t growing fast enough to capitalize on it. The tactics they had relied on in the past weren’t positioning Magaya to become a dominant player in the future. To evolve operationally and take steps to expand the breadth and depth of its solutions, the company needed to make its first acquisitions.

The value that LLR has brought to Magaya extends far beyond its capital investment. The experience, leadership and knowledge the LLR team brings to the table are truly priceless. LLR has been instrumental in setting Magaya on our current course as a true leader in the digital transformation of the logistics industry.Gary Nemmers, Magaya CEO

Magaya and LLR dove deep into strategic planning, comparing the time and budget spent by management, R&D and sales to the actual sources of revenue. Together, they discovered untapped opportunities that would change the company’s future, giving them the data, clarity and vision needed to bring its growth to the next level.

All parties aligned on a renewed focus around digital freight forwarding. This in turn, guided the LLR Value Creation Team to support transformational change in critical areas of the business, including product roadmaps, pricing, sales target identification and leadership team expansion. With a data-driven strategy, Magaya could also confidently make tough decisions to discontinue less impactful projects and pull back from less strategic markets.

These efforts also enabled Magaya and the LLR team to narrow their aperture for M&A, focusing on solutions that further the company’s goal of being a flexible, integrated, and modular logistics software leader. Within two years, Magaya strategically identified and acquired companies in the areas of U.S. customs compliance, rate management and digital forwarding. This delivered transformational growth that included doubling in scale, tripling its employee base, and serving more than 2,300 customers in 104 countries.

Case studies presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies. Such portfolio companies are controlled by investment vehicles managed by LLR. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.