Houston-based The Now Network's last-mile logistics platform is growing its development team. Getty Images

Many startups turn to offshore outsourcing to fuel their growth. The Now Network, a Houston-based energy tech startup, is doing just the opposite — relying on stateside in-sourcing.

The SaaS company is in the midst of building out its in-house development team, including full stack developers and UX/UI designers. This year, The Now Network plans to add another four to six developers, on top of the six who already are on board. Stacey McCroskey, the company's director of product since September 2019, leads the team.

Previously, the development team consisted of more than a dozen contract workers in Ukraine and India, says Mush Khan, president of The Now Network. Khan assumed the president's role in May 2019.

"We believe that having our own in-house team drives a sense of ownership over the product. We have to eat our own cooking, because what we build, we have to support," Khan says.

Compared with the outsourcing model, the in-house team enables the company to more quickly release higher-quality products and more quickly respond to customers' needs, he says.

"Over the years, The Now Network has seen immense growth, consistently advancing its technology framework to drive faster payments, increased driver retention, an expanded 3PL network, and increased business revenue," Sam Simon, the company's founder, chairman, and CEO, says in a release. "The addition of an in-house development team will only amplify this growth, promoting more opportunities for cross-collaboration and customer feedback, to expand upon and refine existing features."

Members of the in-house development team are working on expansion of The Now Network's last-mile logistics platform for wholesalers, third-party logistics (3PL) carriers, drivers, and users of fuel. Khan says the platform offers "complete visibility and accuracy" throughout the fuel delivery process.

Competition for tech talent in Houston industries like energy and manufacturing is ramping up as the region evolves as "a fast-paced, innovative environment," he says.

"We believe companies like ours offer an opportunity to build a product from the ground up," Khan says, "and in an environment that allows them to express themselves creatively."

In June 2019, staffing firm Robert Half Technology put Houston in fourth place for the anticipated volume of IT hiring in U.S. cities during the second half of the year.

"The technology market in Houston remains strong as more companies are investing in systems upgrades, focusing on security, and taking on digital projects," Robert Vaughn, Robert Half Technology's regional vice president in Houston, said in a release. "The candidate market remains tight, and companies that prolong the interview process or don't make competitive offers tend to have the hardest time staffing open roles."

Today, The Now Network employs 15 people, all but one of whom works in Houston. The company expects to grow its workforce to around 30 by the end of 2020, Khan says. To accommodate the larger headcount, The Now Network is moving this month from WeWork at the Galleria to a 6,000-square-foot office in the Upper Kirby neighborhood.

To help finance its growth, The Now Network will soon launch its first-ever fundraising effort. Khan says the company will seek more than $5 million in investment capital.

Founded in 2015, The Now Network strives to simplify the last mile of the "energy ecosystem," which Khan describes as "slow, opaque, and expensive." Its SaaS platform automates delivery functions in the energy supply chain, doing away with manual labor and tedious paperwork, he says.

Since early 2018, the startup has handled more than 180,000 customer transactions involving over 1.8 billion gallons of fuel.

The Now Network is a portfolio company of Simon Group Holdings, a private equity firm based in Birmingham, Michigan. One of its key areas of focus is the energy sector.

In 2017, The Now Network (previously known as FuelNow Network) entered a strategic partnership with Houston-based Motiva Enterprises LLC, a fuel refiner, distributor, and retailer owned by Saudi Refining Inc. Khan says his company is collaborating with Motiva to roll out The Now Network platform to U.S. fuel wholesalers.

"As of now, Motiva doesn't have a stake in our company," he says.

Motiva owns East Texas' 3,600-acre Port Arthur Refinery, the largest oil refinery in North America, with a daily capacity of more than 600,000 barrels. State-controlled Saudi Aramco — which went public last year in an IPO valued at $2 trillion — owns Saudi Refining.

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Pharmaceutical giant looks to bring $5.9 billion facility to Houston

in the works

Pharmaceutical company Eli Lilly and Company is looking to build a $5.9 billion active pharmaceutical ingredient (API) manufacturing facility in Houston, according to a recent filing with the state of Texas.

The proposal states that the project plans to employ 604 full-time direct employees at the site upon ramp-up completion. These would include operations technicians, production specialists, maintenance support, quality control/assurance, engineering, administration, and management. Construction is projected to begin in 2026, with a completion target of 2030 and commercial operations beginning in 2031.

If completed, Lilly would purchase 236 acres at Houston’s Generation Park from McCord Development, the commercial development’s owner. The purchase would include multiple buildings, outdoor facilities, infrastructure buildout, and equipment installation.

This proposed Texas plant would be part of Lilly’s $27 billion effort to expand its U.S. production capacity, which was announced in February and includes construction on four new facilities in America. Lilly has previously referred to the plants as “mega sites.”

"This represents the largest pharmaceutical expansion investment in U.S. history," Lilly CEO David Ricks said during the February news conference.

The company has applied for school tax abatements under the new Texas Jobs, Energy, Technology, and Innovation program, according to reports from the Houston Business Journal. This incentive program allows school districts to limit the taxable value of a property for a portion of school taxes, which could save companies millions of dollars on a large portion of property tax bills. It also gives a 10-year tax cut for new manufacturing and development facilities, as long as there is localized job creation.

Houston airports poised for 1.3 million travelers on Memorial Day weekend

Taking Off

George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU) are estimated to see 1.3 million travelers during the Memorial Day period (May 20 - May 28). Despite large crowds, the airports say they have prepared with multiple new improvements designed to slow traffic and make check-ins easier.

“Air travel drives jobs, business and tourism — and this summer, Houston Airports is powering that growth,” said Jim Szczesniak, director of aviation for Houston Airports.

“From streamlined security to a smarter website to new flights and fresh amenities, we’re delivering improvements that support Mayor Whitmire’s call for a more user-friendly Houston. These upgrades aren’t just about moving people — they’re about moving our economy forward.”

IAH in particular has seen remarkable drops in wait times thanks to the new IAH International Arrivals Curb. Part of the $1.458 billion IAH Terminal Redevelopment Program (ITRP), it reduced airport traffic during the Christmas holidays by a whopping 99 percent, with the average wait time reaching only two minutes. Other improvements include TSA Precheck enrollment pods at both airports and the agility for international travelers to recheck bags without leaving the terminal after they have passed through customs.

The amount of travelers expected for Memorial Day is slightly below 2024 numbers, but Houston Airports expects record-breaking travel over the summer. Current estimates show 19.5 million people moving through both airports through Labor Day, a 250,000 increase over last year. Part of this can be attributed to IAH's increasing status as the gateway to Mexico, Central America, and South America, running nonstop flights to new tourist hot spots like Puerto Escondido.

In additions to streamlining the flight processes, Houston Airports are expanding concession and shop offerings. Hobby recently opened The Rustic, Chick-fil-A, Pei Wei, and Throughgood Bistro. Bush added Hip & Humble, a boutique gift and souvenir seller focused on the items for women travelers and those looking for a little luxury when they return home. And, as always, Houston Airports have some of the finest art in the country. All of it together makes traveling to and from the city much less stressful than the big crowds would portend.

"We’re ready to welcome millions with efficiency and a warm Houston spirit,” said Szczesniak. “This summer, travelers will see and feel the difference we’ve made.”

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This story originally appeared on our sister site, CultureMap.com.

Houston e-commerce unicorn reaches $1.6B valuation with $50M fundraising round

fresh funding

Houston-based Cart.com, a provider of fulfillment and logistics services for B2C and B2B brands, has raised $50 million in venture capital, pushing its valuation to $1.6 billion. Since it was founded in 2020, Cart.com has raised $475 million.

Cart.com earned “unicorn” status in 2023 after securing a $60 million Series C round of funding. In the startup universe, “unicorn” refers to a private company that’s valued at $1 billion or more. Last year, Cart.com nailed down $130 million in debt funding, lifting its valuation to $1.2 billion.

Technically, Cart.com no longer qualifies as a startup. Rather, it’s now in “scaleup” territory. This term refers to a startup that has notched substantial growth and has maintained a stable workforce, among other positive achievements. Notable brands that have graduated from startup to scaleup include Airbnb, Peloton and Uber.

The $50 million round includes money from funds and accounts managed by BlackRock and Neuberger Berman, and new investors such as eGateway Capital, along with several unidentified venture capital firms, investors and family offices.

The company said it will use the fresh capital to fuel its global expansion through investments in infrastructure, technology, and M&A.

“Cart.com is continuing our strong growth trajectory across all operating metrics, and we intend to utilize this additional capital to accelerate the expansion of our platform and bring our customers new capabilities to enable their growth,” Omair Tariq, founder and CEO of Cart.com, said in a news release. Tariq added that his company is “well on our way to building the largest and most comprehensive platform in our space.”

Over the past 12 months, Cart.com completed its acquisition of OceanX, the fulfillment operation of direct marketing company Guthy-Renker, and Amify, an Amazon marketplace optimization and advertising platform. Bill Guthy, founder of Guthy-Renker, now sits on Cart.com’s board of directors