Convoy Inc., a logistics startup on track to generate more than $1 billion in revenue this year, today announced that it has raised $260 million from investors at a $3.8 billion valuation.

The financing included a $160 million Series E preferred equity funding round led by Baillie Gifford and T. Rowe Price. The remaining $100 million was provided by Hercules Capital in the form of a venture-debt investment. Convoy also disclosed today that it has secured a $150 million line of credit from J.P. Morgan.

Seattle-based Convoy provides a platform through which companies such as retailers can coordinate merchandise shipments with truck operators. The platform provides access to a network of more than 400,000 trucks. Convoy says that companies can book shipments in a few minutes, track merchandise while it’s being delivered and manage related logistical tasks.

For truck operators, Convoy provides an app that makes it possible to bid on shipments booked by companies and freight brokers through the startup’s platform. The startup also offers other features, such as a savings program that promises to help truck operators reduce operating costs.

Convoy uses machine learning to optimize deliveries. The startup’s algorithms reduce empty miles, a term for the distance that a truck travels without merchandise onboard, to lower carbon emissions. An analytics dashboard enables companies to spot inefficiencies such as shipping delays and find ways to fix them.

“Trucking is shifting to connected, transparent, and data-rich systems that efficiently orchestrate across shippers, carriers, drivers, trucks, trailers, docks, yards and more,” Convoy co-founder and Chief Executive Officer Dan Lewis wrote in a blog post today. “Carriers and drivers experience higher truck utilization, fewer empty miles and less wasted time.”

Convoy told TechCrunch that it’s on track to generate more than $1 billion in revenue this year. The startup could reportedly consider launching an initial public offering in the future, but there is currently “no specific plan” for a stock market listing. 

The $260 million investment that Convoy announced today will help the startup accelerate product development initiatives. Additionally, Lewis hinted that the autonomous driving segment is among the areas the startup intends to prioritize.

“Whether a truck can drive autonomously will vary by its load, technology, location, current weather conditions, traffic situations, etc.,” Lewis stated. “Doing this effectively will require technology and techniques like machine learning and AI to consider these variables and optimize. This will be a significant opportunity for Convoy.”

Image: Convoy