WorkHound Raises $500K from Investors

WorkHound, a software platform developed to help trucking companies be more profitable by retaining drivers, has raised $500,000 to grow the startup and add to its team.

The company, founded by Andrew Kirpalani and Arkansas native Max Farrell, has four full-time employees in Chattanooga, Tennessee, and two in Des Moines, Iowa.

The investment round was led by Right Side Capital Management of San Francisco. Other participants were Dynamo Fund of Chattanooga, Tennessee; Twelve19 Ventures of Des Moines, Iowa; and several angel investors, including some from Arkansas.   

WorkHound allows truck drivers use their smartphones to share feedback and ideas with carriers. WorkHound aggregates that feedback and turns it into actionable insights to help manage and retain drivers.

“We know it is important to address issues at the speed of business,” Farrell said. “In trucking, and many other industries, a driver can be happy on Tuesday but fed up on Wednesday and decide to leave the company on Thursday or Friday. So it’s really important to be able to understand and address those challenges quickly. And that’s something we’ve been able to do a really great job of.”

Farrell told Arkansas Business this latest investment brings the startup’s total raised to around $600,000.

“Everything we do is driven by customer feedback, and we’ve built a great product that creates a lot of value now,” he said. “And now we get a chance to move a lot faster in addressing what our customers need to be even more successful and engaging with their drivers.

“[The investment] allows us to grow our software development team, to move faster,” Farrell said. “That’s the biggest thing … We’ve already started hiring, that led to our initial team growth. We’re a sales-driven organization. We’ll continue to grow as we grow our customer base.”

The startup’s only customer in Arkansas is Southern Refrigerated Transport of Texarkana, and a case study about how WorkHound helped it decrease driver turnover by 16 percent in six months is available here. But talks are underway with several other trucking companies in the state, Farrell said.

“WorkHound helps logistics companies connect with their front-line workers,” Ted Alling, managing director of Dynamo, said in a news release. “The result is a happier, more informed, and ultimately, more productive workforce. We’re excited to have seen them grow through our program and help improve lives for those operating the backbone of America.”

Farrell added that, while those in the warehousing, manufacturing, nursing and fast food industries have approached WorkHound about how the technology can help them, “our team remains focused on the trucking industry right now.”

Farrell is the son of Arkansas Business Publishing Group CEO Olivia Farrell.