For freight forwarders, getting pricing data for their customers usually involves going to multiple sources and then consolidating information into spreadsheets. That is time-consuming and complicated, especially since price data is constantly changing. Freight wants to make the process as easy as comparing airline tickets with its vertical SaaS platform.
The Singapore-based startup announced today that it has raised a $12 million Series A led by Sequoia Capital India, with participation from Trail Mix Ventures and Alteria Capital. The round also included returning investors Nordic Eye Venture Capital and Motion Ventures.
londonbusinessblog.com last reported on Freightify in July 2021, when it raised $2.5 million in seed funding. Freightify is now used by more than 200 freight forwarding companies in 45 countries and says revenue has tripled in the past year. The company calls itself the “Shopify for Maritime Freight” because it provides white-label rate management and e-booking tools for freight forwarders to set up online stores. The startup’s SaaS platform also offers track-and-trace solutions to show forwarders the live location of ships.
The startup was founded in 2016 by Raghavendran Viswanathan as a freight marketplace before moving to an automated rate management system, in a move he compares to Shopify’s evolution from an online snowboard store to an e-commerce ecosystem.
Viswanathan said pricing data from shipping companies, non-ship operators, land carriers and consolidators comes in different formats and currencies, meaning freight forwarders have to manually consolidate all the data. Collecting freight rates usually involves sending multiple emails, viewing PDF documents, filling out spreadsheets, and keeping browser tabs open with pricing data. After that, sharing with customers can take a few days, depending on how complex their requests are. Freightify’s rate management and quote features allow freight forwarders to purchase and quote freight rates, including any additional changes, in less than two minutes.
Freightify is currently post-revenue and pricing packages are pay-as-you-go. Viswanathan said Freightify’s main competitors are still spreadsheets and “freight forwarders’ unwillingness to use technology,” but more are willing to adopt technology, thanks in part to the push for digitalization brought on by the pandemic.
More marketplaces and digital forwarders are emerging in different markets, and part of Freightify’s competitive strategy is selling a SaaS product. “The industry isn’t an all-market winner and freight forwarders can recognize a viable solution when they see one,” said Viswanathan.
Freightify’s new funding will be used for product development and new feature launches, international sales force growth, channel partnerships and marketing.