Hello, it’s IINO.
I would like to broadcast IINO san’s Logistics Radio.
Today, I would like to talk about, “Flexport successfully raises USD935 million in funding”, from the Wall Street Journal news.
Daily Logistics Radio by IINO san in 8th Feb. 2022
Flexport, an American digital forwarder, is a startups forwarder that provides tech-enabled freight forwarding services.
Valuation Raised to USD8 Billion
On Monday, the company said it raised USD935 million in a Series E investment round. This brings the total valuation to USD8 billion.
Flexport made headlines in its 2019 Series D funding round with a USD1 billion investment from SoftBank Group’s Vision Fund.
Digitalization of the Logistics Industory
At the center of the world’s supply-chain gridlock, the race to digitize logistics and trade operations is on.
The article reports, Flexport’s funding round extends a wave of investments in logistics tech startups.
Increase of Startups
According to one analysis firm, supply chain technology startups raised USD24.3 billion in the first three quarters of 2021, 58% more than in all of 2020.
Investment in digital technology in logistics is on the rise.
As I’ve mentioned on this radio, I’m seeing more and more frequent news about AI and platforms in the maritime press.
Flexport is a freight forwarder that rents space from shipping companies and provides space to shippers.
Use of Own Platform
The difference from other companies is that they use a digital platform developed themselves. The platform allows for price comparison, tracking, and booking.
Other activities include customs clearance, warehouse operations, and aircraft chartering.
What is interesting is that they also do “finance” in the form of insurance and loans. One of the investors is Wells Fargo, the third largest bank in the U.S. in terms of asset value.
It can be a bridge loan for importers and others with cash flow. Since they are an IT company, they have a huge amount of data, which they use for loan screening and other purposes.
Expansion of Logistics into Peripheral Businesses
I think it’s a good idea to use IT technology to do business around logistics as well.
It is necessary to always follow and know the global trends. I will keep you posted on various tech information and so on.
That’s all for today. Thank you.