FreightHub, a Berlin and Hamburg-based startup that claims to be Europe’s first totally digital freight forwarder, has raised a $20 million Sequence A spherical, simply 1.5 years since launch. The spherical is led by VC agency Northzone, with participation from present traders. The latter consists of Rocket Web’s International Founders Capital (GFC), Cherry Ventures, Cavalry Ventures, and La Famiglia.
Working within the freight trade, a market that’s ripe for digitalisation and consequently has attracted a plethora of well-funded startups, FreightHub is getting down to compete with and change conventional freight forwarding firms who usually depend on legacy IT techniques and cumbersome and handbook processes. This, the corporate claims, results in value opacity and inefficiencies, one thing it’s aiming to eradicate.
“The logistics trade nonetheless largely depends on outdated, handbook, and paper heavy legacy techniques and processes, resulting in loads of inefficiencies and lack of transparency,” says FreightHub’s co-founder and CEO Ferry Heilemann, who beforehand based Groupon clone DailyDeal, which was offered to Google in 2011.
“We’re giving our clients the management over their provide chain by making Freight forwarding extra environment friendly, extra dependable and extra clear by means of actual time processes on our digital platform”.
Describing FreightHub’s broader mission as “constructing the spine of 21st century international commerce,” not like a lot of different startups within the freight area which might be taking a market or value sharing and comparability strategy, Heilemann says the startup is working as a full service digital freight forwarder, which means that it offers with its B2B clients from citation, proper by means of to transport and monitoring shipments.
This has seen FreightHub digitise buyer acquisition with a gross sales course of that makes use of on-line channels and display sharing as an alternative of getting area gross sales individuals driving to industrial parks and knocking on doorways. Citation and reserving has additionally been digitised, with the FreightHub founder claiming that it’s the solely freight forwarding participant in Europe providing actual time citation and reserving on its platform for sea, air, and rail, between Asia and Europe.
The corporate has additionally constructed a proprietary transport administration system (TMS) to streamline all its processes, with real-time monitoring and analytics additionally offered. “We’re delivering finest after gross sales service by means of our real-time monitor and hint with automated notifications, an ideal cargo overview and centralised doc administration. Prospects don’t must name us to seek out out concerning the standing of their cargo,” says Heilemann.
In the meantime, I’m instructed FreightHub has acquired greater than 650 clients within the first 17 months, together with main e-commerce websites like Dwelling24 and Lesara which might be importing from Asia to Europe, and European ‘mid-market firms’ like Franke or Viessmann.
The startup generates income in the identical was as conventional freight forwarders do by including a dealing with price to the charges it receives from carriers. “In the long term we might add particular software program options for enterprise clients, resulting in a mixed enterprise mannequin of transactional and software program revenues,” provides Heilemann.