A “Digital freight forwarder” called Zencargo has raised $4M to continue its mission to transform supply chain data.
Investors continue to pile into startups promising to improve shipping with software to digitise processes, rather than investing in warehouses and forklifts to move the actual goods. This week Zencargo announced it has raised funds in a“seed round led by LocalGlobe, with participation from Samos Investments and Picus Capital bringing total funds raised to over $4m”.
Zencargo bills itself as a digital freight forwarder. “Zencargo makes it completely free for companies to digitise their supply chain. Its platform includes end to end visibility for shipments from purchase order to delivery. Getting the full picture of your logistics has traditionally been very difficult because of fragmented suppliers and manual processes. Zencargo’s customers utilise its Virtual Local Offices to gain visibility during production around the world.”
Customers, including, wearable technology company Catapult and mattress-in-a-box brand Simba, use Zencargo’s digital platform for real-time supply chain feedback. "The features and functionality have helped Catapult to expand its supply chain to over 50 countries, with 98% of all shipments arriving on time," ZenCargo claimed.
Tom Hook, Supply Chain and Operations Manager at Catapult, said: “Working with Zencargo helped us digitise our complete shipping operation overnight. Their technology acts like an extension of our team; helping to increase visibility into our supply chain, minimising the amount of admin and communication required and allowing us to focus on developing and improving the way we operate rather than continually chasing it.”
The company will use the new funding to accelerate its product development process and build a presence in China. “Our mission is to simplify and automate international trade, making it easier for all companies to access high quality services in what has traditionally been a relationships-centred industry,” said Richard Fattal, Chief Commercial Officer. “The supply chain visibility we provide is still very new in this sector and would have been an enormous help to me when I was working as a trader.”
Zencargo’s platform cuts admin time by providing a central workspace, which pulls supply chain data from different systems and parties and displays it together in one place. “This saves agents having to funnel information across email chains and shared spreadsheets,” Zencargo said.
“We’ve had an excellent first year,” said Mr Fattal. “We’ve attracted a lot of fast-growing digital companies led by a new generation of business leaders. These are the kind of companies that are driving productivity growth in the UK and elsewhere and we are enjoying helping them operate with greater efficiency.
“The more a company ships, the more time - and cost - it can save. That’s why a lot of enterprise businesses that are undergoing digital transformation have come to us - we can help them to take cost out of a complex process,” Mr Fattal added.
Pictured left to right are co-founders: Richard Fattal, Chief Commercial Officer, Alex Hersham, CEO, and CTO Jan Reithmeyer.