London-based digital freight forwarder, Zencargo, enables organisations to make smarter decisions by providing a real-time overview of their supply chain using AI machine learning. In a recent development, the company has raised £30 million Series B funding.
International expansion plans ahead
The investment round in Zencargo was led by Digital+ Partners along with participation from existing investors including HV Capital. The company intends to use this latest round of funding to double its team from 150 to 350 people in two years. Also, Zencargo eyes to expand internationally, establishing its presence in the Netherlands, Hong Kong, and the United States.
Besides expanding its operations and team, Zencargo will also use the investment to make inroads into Trade Finance, under the leadership of its newly appointed CFO, Chris Greenacre from B2B lending giant Sonovate. With this, the total investment raised by the company is £42 million and it is targeting £100 million revenue this year and surpass £200 million in 2022.
“We pride ourselves on the outstanding service we provide to customers, combining unrivalled industry experience and know-how with purpose-built technology so that our customers’ inbound supply chains are run in a far more sustainable and efficient way, enabling them to maximise growth,” said Alex Hersham. “This funding comes at a time of significant growth for the business, and will enable us to grow our team and operations and provide critical support to even more clients.”
“The freight industry has struggled to keep pace with innovation. Archaic processes are still in place across the board, resulting in widespread inefficiencies,” commented Patrick Beitel, Managing Director and Founding Partner at Digital+ Partners. “Zencargo’s cutting edge technologies, plus deep industry experience and knowledge, are transforming the supply chain, and that marries up perfectly with Digital + Partners’ mission to back companies with best-in-class technology and exceptional management teams. We are honoured to join them on the next stage of their journey.”
“HV Capital is delighted to once again back Zencargo, a true leader in the supply-chain management sector,” said Dr. Christian Saller, General Partner at HV Capital. “The growth of the company, in terms of customer acquisition, headcount, and product development, has been remarkable, and that is down to the world-class leadership team at the helm.”
Supply chain visibility
Founded in 2017 by Alex Hersham, Richard Fattal, and Jan Riethmayer, Zencargo faced unprecedented disruption caused by Brexit, the Suez Canal blockage, and the COVID-19 pandemic. These have resulted in a supply-side issue and a sharp uptick in demand along with further complications.
“With global freight reliability so low as a result of the pandemic, Brexit, and even the Suez Canal delays, it’s more important than ever for businesses to make informed supply-chain decisions that will enable them to serve and satisfy their customers, and Zencargo is the perfect partner to help them do that,” commented Alex Hersham.
During the recent Suez Canal blockage, Zencargo created a live dashboard mapping its customers’ shipments with vessels that were affected by the blockage. It worked directly with affected customers to arrange mitigations and alternative plans.
Relied upon by the likes of Vivienne Westwood, Swoon Furniture, Farfetch, and Soho Home, Zencargo handles all the necessary components of transporting goods, from point of production to end-customer, including warehousing, packing, documentation, and customs clearance. Also, the company provides complete visibility of the supply chain down to the item level.
Offsets emissions
As Zencargo’s technology platform connects directly with global transportation markets and manufacturers, customers can see a complete digital picture of the freight environment. Eventually, it helps them make improvements and transport cargo more efficiently. Zencargo also presents customers with information on their carbon footprint, enabling them to choose to reduce and offset emissions.
The logistics provider has empowered clients to make data-backed decisions that on an average drive up to a 4% increase in revenues, a 9% reduction in carbon emissions, a 6% reduction in transportation costs, and a 15% improvement in working capital. This is possible as supply-chain teams focus on ordering and moving only the products they need at any given moment.
Originally Appeared On: https://www.uktech.news/news/london-freight-logistics-company-zencargo-funding-20210511