Mumbai-based freight logistics startup Cogoport has raised an undisclosed amount of Series A funding from Accel Partners.
The startup plans to use the series A funding to invest in developing new product and fuel business growth by expanding globally and increase its footprint in domestic market.
Commenting on the investment, Shekhar Kirani, Accel Partners said, “The timing is right for disruptors in global logistics and freight category, as the market is massive and growing. When we met Cogoport team with deep domain experience, global expertise, fantastic product specialization, strong technology background, and financial banking expertise, we felt the team has all the ingredients for targeting the sizeable global market.”
Incorporated in May 2016 by Purnendu Shekhar, Kunal Rathod, Harsh Kumar and Nishant Dalmia, Cogoport began its operations in February 2017. It is an online international freight exchange that uses cutting-edge technology to make the most cost-effective match between exporters and importers on one hand and ocean and air freight carriers on the other.
It also enables price comparison for trucking, custom and inland docking charges. In a statement, the startup claimed that technology-led solutions aimed at offering enhanced business experience are at the heart of the brand’s value proposition.
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Commenting on the funding, Purnendu Shekhar, Founder and CEO of Cogoport, said, “Over the last year we have been able to validate our firm belief that technology can transform the erstwhile frameworks of freight industry which are opaque by design and inefficiency in the system. Our customer centric approach has been very positive for us, as we took the risk of building our product along with our customers.”
With operations in Asia and Europe, the startup claims to be on steep growth trajectory despite being in stealth mode. Cogoport team is a blend of industry experience, technology hackers, bankers and product specialists.
Cogoport is expanding its team globally and strengthening processes to cater to significant demand, with more than 400 enterprises wait-listed to start transactions. At present, nearly 3000 customers use its services.
In the logistics space, Cogoport has the benefit of the huge untapped market of international logistics, while in Indian logistics we have startups like BlackBuck, GoBolt etc who are enabling tech-based logistics services in the country.
The Indian Government Economic Survey 2017-18 revealed that the country’s logistics industry which is worth around $160 Bn is likely to touch $215 Bn in the next two years with the implementation of GST, growing at a CAGR of 10.5%.
The Global Ranking of the World Bank’s 2016 Logistics Performance Index shows that India jumped to 35th rank in 2016 from 54th rank in 2014 in terms of overall logistics performance.
In the segment of exporters and importers, technology has been widely untouched. With the huge potential of the global logistics market, Cogoport has found the right push with the series A funding.