Chennai-based logistics tech startup FreightBro has raised an undisclosed amount in a seed round from Suresh Kumar, former global CIO of Bank of New York Mellon. With this funding, Kumar joins the company as an advisor. Kumar’s vast experience in running over 10,000 employees will be helpful for FreightBro’s wide expansion throughout the nation and world.
The funds raised will be used by the startup towards product development and expansion. The company is focusing on Chennai and Mumbai and will look at covering other port towns subsequently.
Founded in 2016 by Anand Babu, Raghavendran Viswanathan and Mohammed Zakkiria, FreightBro is a tech startup aiming to revolutionize the trillion-dollar international freight Industry. The startup leverages the power of technology, that enables freight forwarders to make data-driven decisions, predict changes in the market and provide better value to shippers.
It provides freight forwarders and 3PLs state of the art IT tools to maintain and enhance their process chain. One of its flagship products, InstaQuotes, is a SaaS (Software as a Service) platform that will enable forwarders to quote their procured rates in less than two mins and efficiently manage their buying and selling prices. The startup claims that, InstaQuotes has proven to decrease the cost of sales by 50% and improve operational efficiency in vendor rate management.
The startup has established partnerships with cargo shippers such as Maersk, Emirates, Safmarine, and ONE.
Speaking about the investor, Suresh Kumar, he had worked for several industries like online commerce, brokerage workstation platforms, outsourcing, and big data. With over 30 years of experience, he was once inducted into CIO Magazine’s Hall of Fame in 2016.
Welcoming Suresh to the FreightBro’s board, Raghavendran Vishwanathan, CEO, FreightBro, says, “Suresh is a veteran of banking and financial services technologies. Over the past 30 years, he has led the financial services industry in online commerce, brokerage workstation platforms, outsourcing, big data, and most recently blockchain technology. With this strategic alliance and investment, FreightBro is moving forward to expand aggressively across all major and minor port cities of India by the end of 2018. I’m looking forward to advising the firm in their efforts to scale up and deploy the best of the emerging technologies to the shipping industry.”
According to industry sources, the global logistics market is currently estimated to be around $3.5 trillion. India spends around 14.4 percent of its GDP on logistics and transportation compared to less than 8 percent by the other developing countries. India’s freight transport market is expected to grow at a CAGR of 13.35 percent by 2020. Cogoport has clocked an annual run rate of $10 million so far, with ocean freight accounting for 95% of it.
Last month, a plenty of logistics startup have had raised funds including Bengaluru-based Mojro, which raised $650K in a funding round led by 1Crowd and its investor community followed by $2 million funding of Chennai-based Pando, in a seed funding round led by Nexus Venture Partners.
In the same month, Mumbai-based online freight logistics startup Cogoport has raised about Rs. 40 crore in Series A funding round from private equity investor Accel Partners.
Source – Times of India | Top Image – Yourstory.com