The company, founded in 2018, has announced $2.2m in business angel investment, which provides the capital to grow the business and focus on the opportunity created by the world’s race to net zero.
The Algorithm People provides route optimisation and decarbonisation solutions for fleet modernisation, enabling them to operate more efficiently, while also effectively transitioning to
electric and other low emission vehicles.
It has developed a web-based platform called My Transport Planner, that enables users to purchase credits and optimise their vehicles on an on-demand basis.
This makes 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 per cent.
This was validated when the company won an Innovation in Cost Reduction award for its technology at this year's Great British Fleet Awards.
This latest round of funding will help the company accelerate its plans for growth in the UK, while also penetrating overseas markets and is anticipated to create jobs both in Scotland and at its offices in the North of England.
Stephen Kelly, former CEO of Sage Chair and Tech Nation is leading the consortium of technology investors which include 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, founder and CEO of Numis Securities Oliver Hemsley, and Mike Townend, Craig Probert and Andy MacLachlan, who bring key sector experience and industry knowledge.
Kelly said: “The Algorithm People has huge potential for global market leadership. 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 for fleet operators. This unique blend of technology and consultancy enables fleet managers to make evidence-based decisions on where, when, and how to deploy electric vehicles (EVs) and where infrastructure should ideally be located.
Managing director, 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."
Colin Ferguson, CEO 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.”
This 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."
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