Unicorn Flexport is revolutionizing the world of logistics, serving as a freight forwarder with software program that permits clients to handle their shipments. However there are nonetheless 1000’s of smaller freight forwarders, many operating on outdated ERP software program or spreadsheets. A startup known as GoFreight needs to assist them compete by offering the “Shopify of freight forwarding,” with backend software program that makes their operations run extra easily, and a frontend that lets them arrange a storefront and supply quotes in a couple of minutes.
The Los Angeles and Taipei-based startup has raised $23 million in Collection A funding, co-led by Flex Capital and Headline. The spherical included participation from LFX Enterprise Companions, Palm Drive Capital and returning buyers Mucker Capital, Cornerstone Ventures and Pink Constructing Capital.
GoFreight, which presently has about 1,000 clients, helps handle transportation of products via ocean, air and land routes. It additionally lets them arrange on-line storefronts with just a few clicks. Potential clients can connect with freight forwarders by sending them an inquiry via storefront and getting a citation inside a couple of minutes, as a substitute of the 24 to 48 hours normally mandatory.
As soon as a freight forwarding job is underway, shipments will be tracked with an EDI-integrated, real-time device, so freight forwarders and clients know precisely the place their cargo containers are. Monitoring software program additionally integrates with accounting instruments on GoFreight’s platform, so customers understand how the efficiency of shipments is impacting their earnings.
Co-founder and CEO Trenton Chen earned his Masters and PhD in the US earlier than returning to Taiwan to affix TSMC. At the moment, AppWorks and different startup applications have been getting a number of consideration, and Chen determined he wished to grow to be an entrepreneur. He left TSMC (“it was a tricky resolution, as a result of nobody agreed with that,” he informed TechCrunch), and gave himself six months to discover a viable thought. Throughout that point, one in every of his co-founders was dwelling in Los Angeles, working as an importer for a household enterprise.
“After I was within the States, I knew lots of people on this trade as properly. So lots of our good buddies requested us to go there and see how dangerous the software program is. So within the final month of my six month interval, I made a decision to offer it a possibility, purchased a ticket for 3 months to go to LA and spend time with the primary 10 freight forwarders, studying how they do enterprise with software program. We based GoFreight after the primary week we have been there,” Chen stated.
Although Chen says the worldwide freight forwarding market is value about $280 billion {dollars}, virtually all of the software program it runs on is outdated. GoFreight’s purpose is to empower conventional freight forwarders to remain aggressive with the identical high quality of expertise that Flexport has.
“A freight forwarding enterprise is about find out how to ship cargo from level A to level B. Software program can actually assist, however that’s not their foremost enterprise. The service itself is the principle enterprise and software program can not assist reduce the transport prices or get it there sooner. However it may definitely assist present extra invaluable info to clients, importers and exporters,” Chen stated, including, “We attempt to empower incumbents to compete with Flexport. That’s an strategy to make this whole trade higher and sooner.”
Chen says GoFreight differentiates from different freight forwarding software program startups as a result of most of them are attempting to create new ERP system, or combine with current ones. That is difficult to do as a result of many freight forwarders use ERP methods which are outdated, and it’s a fragmented market. Some don’t even use ERP methods; as a substitute, they work off of spreadsheets or pen-and-paper methods.
On the backend, GoFreight’s software program has gross sales, working and accounting instruments, so when clients have an inquiry, freight forwarders can enter it into their system after which come again with a citation. As soon as a job is confirmed, GoFreight manages bookings, real-time shipments and any mandatory digital filings. They’ll additionally generate and ship invoices via GoFreight.
“Very importantly, we’re making an attempt to grow to be the Shopify of the house, so in one-click they will open a web based retailer, and their importers can use the net internet portal to ship an inquiry and it simply pops up within the system, robotically with pricing they usually can e-book their tickets on-line,” stated Chen. “So the entrance finish utility is so vital and we offer visibility options as properly.”
A serious problem that GoFreight needs to unravel is the method of producing quotes, which might take a pair days since freight forwarding orders are complicated. For instance, if a buyer needs to ship three containers from Shanghai to Los Angeles, freight forwarders have to test with abroad brokers who’re additionally freight forwarders. Additionally they want to rearrange trucking and warehouses. One other factor to contemplate is spot charges versus contract charges, since spot charges will be a lot decrease.
Most of this work is finished via emails, cellphone calls and textual content messages, however a centralized customer-facing app means freight forwarders can full the complete course of, together with checking with abroad brokers, via GoFreight’s integrations, which Chen says reduces the method from two days to about 10 or 20 seconds. GoFreight is presently working with companions to construct a community that connects clients with freight forwarders, and freight forwarders with carriers.
GoFreight additionally supplies a digital fee answer, since most funds have been accomplished by paper checks. This implies freight forwarders can challenge a hyperlink to clients, and as soon as they click on on that they’re taken to GoFreight’s web site, the place they will determine what invoices to pay with bank cards or financial institution accounts. Then that info goes again into GoFreight’s ERP system.
Analytics supplied by GoFreight might help freight forwarders make more cash, Chen stated. For instance, in the event that they e-book a 40-foot container, GoFreight will file how a lot they paid for it and the way a lot clients have been charged. The system analyzes efficiency for high clients and abroad brokers, uncovering hidden charges so freight forwarders have a greater understanding of the true price of a cargo. It additionally breaks down prices per SKU, so freight forwarders and their clients know precisely how a lot it price to ship an merchandise.
The brand new funding will probably be used to develop extra options like good quotations, fee administration and buy order administration.
In a press release concerning the funding, Headline companion Tom Gieselmann stated, “GoFreight’s all-in-one software program supplies better transparency to freight motion, permitting freight forwarders to raised handle their enterprise, which might vary wherever from 0-1500+ customers, end-to-end. This versatility makes the product extremely impactful, and a giant purpose behind why we’ve recognized them as one of the crucial promising logistics tech corporations available on the market.”
