A logistics startup company in Berlin, sennder, recently had its latest round of financing. The company managed to raise €62.4mn (US$70mn) for its Series C round, with its old investors, like the venture capital firms Project A, Holtzbrinck Ventures and Accel, as well as the Swedish auto company Scania, pouring in more money. sennder was found back in 2015 as a digital logistics forwarding platform in the EU, handling FTL Dedicated Truckload Freight, among others, with 7,500 vehicles now connected in its operations across the region.
sennder co-founder Nicolause Schefenacker says that these investments show that they’ve managed to identify a big issue in the EU logistics markets, and that investors want to see what they can do to handle matters. The startup’s Series C financing round came hot at the heels of its prior financing round in April 2019, where they managed to raise €26.5mn, bringing the total funding for 2019 to about €100mn (US$112mn).
Whether it’s FTL Dedicated Truckload Freight or not, the European freight industry is a segment with a lot of digitization, which can help improve operational visibility, and transparency. The industry is also under a lot of pressure from what’s called the “Amazon effect”, where companies are forced to adapt to the times or end up left behind by the competition.
As for sennder, they’ve found a niche by helping logistics companies digitize and automate a large part of their redundant processes, on top of providing improved visibility in every operational segment. Their mobile application, provided to drivers, which contain fleet management tools, and management solutions, that allow for the real-time monitoring of freight.
Their primary focus is providing digitization for the FTL Dedicated Truckload Freight segment, which, on its own, is value at approximately €100bn in the European mainland.
Notably, the digitization sector is getting a lot of money poured into it across the world, with financing rounds raising millions upon millions of dollars. Companies like the US’s Flexport, and Germany’s FreightHub, are providing services to their regions similar to sennder’s. As for the European freight industry, its total value is currently estimated at around €350bn (US$392.58bn, though a large part of it still operates in paper, and other, older systems and methods.