Cargors, a Dutch online platform that connects shippers with carriers, announced on Monday that it has secured €750K in a Seed round of funding. The announcement comes after raising a pre-seed investment of €25K.
The Almere-based company plans to use the funds to build a gateway, which enables direct, neutral, and transparent business between carriers and shippers.
Najeeb Qazizada, founder and CEO of Cargors, says, “The capital boost will be used to support Cargors growth plans, including increasing customer support, expansion, and IT resources. Our main focus will be on further integrating our carriers network, automating and standardising the whole journey for carriers and shippers.”
Cargors: What you need to know
The road freight market in Europe is generally known for its low transparency, the absence of the latest tech, and the high level of brokering. As a result, more than 40 per cent of carriers in Europe drives empty.
Najeeb Qazizada and Tim Bosman founded Cargors to address this specific issue. Cargors enable direct business between the shipper and the carrier by eliminating the broker.
Najeeb Qazizada, “Within our industry, we face extreme capacity issues, and at the same time we accept low margins. This is contradictory when it is common knowledge that many carriers are running empty and have capacity available. By using data analytics (e.g. carrier preferences, specialisations) we are able to map available capacity at a very detailed level and thus complete the puzzle step by step. Driven by data analytics, our system is able to automatically connect the right carriers with the shippers. By doing so, we create a natural hub for the shipper where each of their transport lanes is handled by the most appropriate carrier, thus better utilising available capacity and driving more sustainable.”
The platform aims to provide a sustainable and tech-oriented solution by using data analytics to reduce carrier white spots and create an automation-driven gateway.
Cargors claims that the response from the market has been overwhelmingly positive. To date, more than 450 carriers and shippers have registered with the platform, says the company.
Tim Bosman, co-founder and director of business development, adds, “Recently, we have seen new logistical initiatives, platforms seem to spring up like mushrooms. But, until today, all these platforms lack the key parts for doing direct business and structuring your transport.
Cargors’ journey brings the solutions the industry is waiting for. Bringing sustainability by focusing on all the white spots of carriers and connecting them with shippers. We can and will change the sector; shippers have their own products, carriers have their own wheels and/or directly dedicated charters.”
Bosman continues, “We have a great challenge ahead of us because many carriers still work with outdated and customised TMS systems and each carrier has its own process for requesting quotes, offering rates, and communicating with customers. All this doesn’t help the shippers. The change will take time but is necessary. That our solution works is evident.”