Finnish logistics startup OGOship raises €4M to build a sustainable e-commerce supply chain solution

Helsinki-based OGOship, a scalable 3PL service provider helping e-commerce businesses to streamline their supply chain, announced that it has raised €4M in its pre-Series A round of funding.

OGOship’s logistics platform focuses on sustainable logistics and hassle-free e-commerce growth.

Investors

The round was led by Flashpoint Venture Capital and Innovestor Ventures, with an earlier backer Maki.vc also joining.

According to Paavo Räisänen, Partner at Maki.vc, “The total 3PL market size in Europe and the US is estimated to reach $465B by 2022. In Europe, the total estimated market is 500,000 e-commerce retailers, and in 2020 the e-commerce industry growth was 40 per cent y-o-y. OGOship’s team has made tremendous progress during the past two years. The company has entered the UK and German markets while still continuing fast growth in the Nordics. It now has everything in place to accelerate growth further by complementing its pan-European fulfillment network.”

Alexander Konoplyasty, MP at Flashpoint Venture, adds, “We strongly believe in 3PL as the future of logistics. We are especially happy with their sustainable approach. Shorter shipping distances play an important role in the pursuit of sustainable e-commerce. Sustainable delivery is a rising trend in e-commerce – and it’s a factor consumers value and even seek out.”

Capital utilisation

The proceeds from this round will help the company expand its services internationally by adding four to five countries each year to the existing global warehouse network. In addition, the funds will also help accelerate the growth in the company’s current Swedish, Finnish, German, and the UK markets. According to Timo Toivonen, co-founder of OGOship, these markets have high potential.

Third-party logistics for e-commerce

Founded in 2011 by Pekka Ylenius and Timo Toivonen, OGOship is a tech-oriented logistics company that claims to offers a hassle-free logistic solution for e-commerce businesses. The company believes that every organisation deserves to go global without wasting the company’s – or the planet’s – resources.

OGOship helps e-commerce businesses streamline their supply chain. It does that through third-party logistics, or 3PL, which has become a major part of an effective supply chain for many companies. A 3PL partner makes it simple for companies to outsource some or all of their logistics and warehousing. OGOship’s speciality is e-commerce.

“With us, you don’t have to invest in your own warehouse space, prepare for an unexpected need for workforce, or negotiate transportation deals. We do it for you,” says the company.

After 10 years of experience in e-commerce logistics, OGOship has developed a platform that offers a fast-to-market solution that enables SMEs to scale to new markets in a sustainable and an easily accessible way. In terms of sustainability, the company supports industry change and policies by ensuring no plastic packaging, no diversions, always choosing the shortest route, fast shipments, and no flights.

OGOship’s growth to sustainable e-commerce supply chain solution started in 2017. The company’s multi-network of logistic hubs and last mile delivery network enables its clients to reduce CO2 emissions by up to 96 per cent, shipment costs to go down by over 40 per cent, and speed of delivery increased by over 70 per cent.

The company’s client base includes customers from Europe and US consisting of small and medium sized direct to consumer brands or e-commerce shops. OGOship has also partnered with DPD, DHL, Budbee, and other courier services.

Currently, it has over 50 employees across 5 countries and offers 7 logistical hubs across Europe.