Freightify Secures $2.5M to Simplify Freight Rate Management

Streamlining Maritime Freight with Digital Solutions

Traditionally, freight forwarders have relied on spreadsheets distributed via email to manage and communicate shipping rates to their clientele. However, the recent pandemic has introduced significant volatility to pricing, rendering this method increasingly impractical.

Freightify, a company positioning itself as the “Shopify for maritime freight,” addresses this challenge by offering white-label rate management and e-booking tools. These tools empower freight forwarders to establish online storefronts, thereby minimizing the time dedicated to administrative tasks.

Recent Funding and Expansion Plans

The startup recently announced the successful completion of a $2.5 million pre-Series A funding round. This investment was spearheaded by Nordic Eye Venture Capital, with notable participation from Tradeworks VC, Venture Catalysts, 9Unicorns, and Blume Funders Fund.

Returning investor Vinod Kumar Talreja also contributed to this funding round.

Currently, Freightify provides services to customers across 10 nations. A portion of the newly acquired funds will be allocated towards expansion into the key markets of the United States and Europe.

The company’s customer base encompasses freight forwarders of varying sizes, ranging from those handling approximately 250 shipments annually to those managing over 100,000.

Company History and Evolution

Founded in 2016 by Raghavendran Viswanathan, the current CEO, Freightify initially launched as FreightBro, a freight marketplace.

Over time, the company’s technological focus shifted, culminating in the development of Freightify’s sophisticated automated rate management system.

Platform Performance and Integration

To date, the Freightify platform has facilitated over $400 million in freight revenue for its customers, representing a corresponding gross merchandise volume of $2 billion.

Freightify is designed for seamless integration with existing transport management systems utilized by freight forwarders to monitor cargo movement.

Upon establishing an online store through Freightify, customers can readily compare rates, request quotes, execute online bookings, and track shipments.

The platform aggregates pricing data from the APIs of major ocean carriers such as Maersk, CMA-CGM, and Evergreen. It also automates the input of offline contract rates from carriers lacking API capabilities.

The Impact of Pandemic-Related Disruptions

According to Viswanathan, prior to the onset of the COVID-19 pandemic, freight rates exhibited relative stability, allowing for effective communication via spreadsheets.

However, the pandemic introduced a period of unprecedented disruption to the ocean freight transportation industry.

“The industry experienced a downturn at the pandemic’s start, followed by freight rates reaching record highs for four consecutive quarters,” Viswanathan explained, noting a 500% increase since the beginning of 2020.

Further compounding these challenges, events like the Suez Canal blockage involving the Ever Given and pandemic-induced port delays have increased the unpredictability of supply chains.

A Real-Time Pricing Solution

Freightify offers a solution to these issues by providing a live pricing platform for freight forwarders and their customers. This platform mirrors the functionality of those used by travelers to compare airfares, displaying real-time rates in a consolidated view.

Viswanathan draws a parallel between freight forwarders and travel agents, stating, “Freight forwarders are like the travel agents for the global trade.”

He further clarifies, “However, air travel is less complex than global trade. Managing cargo throughout its lifecycle requires specialized expertise, and freight forwarders are crucial in facilitating smooth operations.”

Future Developments and Collaboration

Freightify is currently developing a new feature that will enable its customers to share data with each other. This will streamline communication across different time zones and reduce reliance on email correspondence.

A pilot program for this closed group product is anticipated to launch by the end of the current year.

Investor Perspective

Nordic Eye investment manager Ib Drachmann expressed enthusiasm about the funding, stating, “It’s exciting to follow a dynamic and ambitious organization that has great chances of making a huge digital impact in international freight forwarding.”