Sennder raises $70m in bid to take on antiquated logistics market

Berlin-based ground logistics company Sennder recently secured US$70 million in a Series C funding round led by Lakestar, according to TechCrunch, which estimates that Sennder’s valuation is approximately US$300 million. 

Sennder raised a Series B totaling $30 million earlier this spring. The startup intends to carve out a niche in the European logistics market by supporting the operations of “full truck load” market segments, particularly those of smaller and mid-sized trucking companies. The group is developing software aimed at digitalizing operations that connects shippers with carriers and offers clients live tracking and real-time booking of their shipment.  

Investment firms have been pouring millions into logistics companies over the past few years, trying to capitalize on a market that SelectUSA estimates was worth a total $1.6 trillion in 2018. 

London-based digital freight forwarder Zencargo saw its own influx of funding in mid-April. The company raised US$20 million in a round of Series A funding led by HV Holtzbrinck Ventures, to further develop software and prepare for the launch of a new supply chain analytics and insight group. The startup completed its “seed plus” round of funding in late September, nearly a year ago, which brought its total funds to US$4 million. 

FreightHub would be another example. The Berlin-based digital freight forwarder raised US$20 million in Series A funding in December 2017.  

Similarly, February saw Silicon Valley SoftBank Vision Fund lead a $1 billion funding round in San Francisco-based online forwarder Flexport. The forwarder’s total valuation, after the funding, comes to US$3.2 billion. The company plans to funnel the funds into “technology and data capabilities, global logistics infrastructure, and deep industry expertise that includes tech and data roles working together with long-time logistics experts, a new combination for the industry,” a spokeswoman told Air Cargo World.

“Moving a single shipment from A to B can take up to 18 companies each of which requires its own paper trail, a relay race in the dark,” she added. “Investors see opportunity in companies that are digitizing the supply chain and freeing up logistics professionals to scale and help their companies grow.”