Unicorn Flexport is revolutionizing the world of logistics, serving as a freight forwarder with software program that allows clients to handle their shipments. However there are nonetheless hundreds of smaller freight forwarders, many working on outdated ERP software program or spreadsheets.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 at present has about 1,000 clients, helps handle transportation of products by means of ocean, air and land routes. It additionally lets them arrange on-line storefronts with a number of clicks. Potential clients can hook up with freight forwarders by sending them an inquiry by means of storefront and getting a citation inside a couple of minutes, as an alternative of the 24 to 48 hours normally needed.
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 hitch TSMC. At the moment, AppWorks and different startup packages had been getting loads of consideration, and Chen determined he needed to turn out to be an entrepreneur. He left TSMC (“it was a troublesome resolution, as a result of nobody agreed with that,” he advised TechCrunch), and gave himself six months to discover a viable thought. Throughout that point, one among 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 nicely. So a lot of our good buddies requested us to go there and see how unhealthy the software program is. So within the final month of my six month interval, I made a decision to provide 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 had been there,” Chen mentioned.
Regardless that 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 objective is to empower conventional freight forwarders to remain aggressive with the identical high quality of know-how that Flexport has.
“A freight forwarding enterprise is about the right way to ship cargo from level A to level B. Software program can actually assist, however that’s not their principal enterprise. The service itself is the primary enterprise and software program can not assist decrease the delivery prices or get it there quicker. However it could definitely assist present extra helpful data to clients, importers and exporters,” Chen mentioned, including, “We attempt to empower incumbents to compete with Flexport. That’s an method to make this complete trade higher and quicker.”
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 can be old-fashioned, and it’s a fragmented market. Some don’t even use ERP methods; as an alternative, 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 needed digital filings. They’ll additionally generate and ship invoices by means of GoFreight.
“Very importantly, we’re attempting to turn out to be the Shopify of the area, so in one-click they’ll 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, mechanically with pricing and so they can e-book their tickets on-line,” mentioned Chen. “So the entrance finish utility is so vital and we offer visibility options as nicely.”
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. In addition they want to rearrange trucking and warehouses. One other factor to think about is spot charges versus contract charges, since spot charges will be a lot decrease.
Most of this work is finished by means of emails, telephone 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, by means of GoFreight’s integrations, which Chen says reduces the method from two days to about 10 or 20 seconds. GoFreight is at present working with companions to construct a community that connects clients with freight forwarders, and freight forwarders with carriers.
GoFreight additionally gives a digital fee answer, since most funds had been completed 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’ll determine what invoices to pay with bank cards or financial institution accounts. Then that data goes again into GoFreight’s ERP system.
Analytics offered by GoFreight may also help freight forwarders make more cash, Chen mentioned. For instance, in the event that they e-book a 40-foot container, GoFreight will document how a lot they paid for it and the way a lot clients had been charged. The system analyzes efficiency for high clients and abroad brokers, uncovering hidden charges so freight forwarders have a greater understanding of the actual value of a cargo. It additionally breaks down prices per SKU, so freight forwarders and their clients know precisely how a lot it value to ship an merchandise.
The brand new funding might be used to develop extra options like good quotations, price administration and buy order administration.
In a press release concerning the funding, Headline companion Tom Gieselmann mentioned, “GoFreight’s all-in-one software program gives 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 an enormous motive behind why we’ve recognized them as one of the vital promising logistics tech firms available on the market.”
