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Zencargo is a digital freight forwarder and logistics service provider based in London. The startup uses automation and machine learning to let customers improve supply chain management. It unlocks key supply chain insights, increases supply chain agility, reduces working capital and shortens lead times by letting customers make informed decisions.
Founded in 2017 by Alex Hersham, Jan Riethmayer and Richard Fattal, Zencargo has witnessed six folds growth in one year. It has rapidly increased its presence with offices across the world and is eying for more in 2019.
Series A funding
This London-based logistics service provider has raised $20 million (nearly €18 million) in a Series A funding round. This funding round was led by HV Holtzbrinck Ventures along with participation from Tom Stafford, Managing Partner at DST Global, Pentland Ventures and existing investors Samos, LocalGlobe and Picus Capital.
The new investment will be channelled towards the product development of Zencargo. Also, it will accelerate the expansion of its Supply Chain Analytics and Insights group with this fund. The team members have rich expertise and their goal is to leverage the company’s machine learning and predictive analytics technologies to partner with clients and improve the supply chain.
Combines software and automation
Zencargo has a different approach to logistics. Instead of the traditional paper-based services, it has brought in a combination of software and automation to transform supply chain management. This digital platform has been adopted by several leading growth businesses in Europe. There are some billion-dollar supply chains that have adopted its digital platform.
Digitises end-to-end process
The platform of this logistics service provider digitises the end-to-end process so that businesses can make informed and timely decisions. The strategy of this company lets businesses release working capital that is tied up in slow-selling inventory and be agile, which results in success. In fact, a recent study by McKinsey demonstrated that supply chain digitisation delivers the highest ROI and helps grow revenue by 3.2%.
Clients across industries
Though its clients are not named, the company has large e-commerce companies, retailers and manufacturers in its clientele. It includes several large businesses in Europe including Amazon. Notably, Zencargo provides integrated services to ship goods to the fulfilment centres of Amazon.
Alex Hersham, co-founder and Chief Executive, said: “Failing to digitise the supply chain is holding back Global businesses, with $1.1 trillion left on the table from stock-outs and inventory mistakes. Our mission is to change this. Business leaders want increased agility in their supply chain and through our platform, we are seeing customers drive cost and working capital improvements in their first few months of adoption by unlocking supply chain insights.”
Jan Riethmayer, Zencargo’s co-founder and Chief Technical Officer, added: “Getting the right products on the shelf at the right time is a vital concern for most businesses. Our technology enables businesses to collaborate in real-time with thousands of suppliers around the world and make informed decisions about their supply chain – from giving a complete consolidation picture to unlocking savings on freight cost and CO2 emissions, optimising load fill, boosting container utilisation, and reducing the amount of energy wasted and emissions created by shipping air around the world.”
Christian Saller, General Partner at HV Holtzbrinck Ventures, said: “We’re excited to be working with the Zencargo team. The size of the opportunity in this space is enormous and we believe that Zencargo’s approach of bringing automation and a single version of the truth to the supply chain will be transformative for customers.”
Stay tuned to Silicon Canals for more updates in the tech startup world.
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