The COVID-19 pandemic has accelerated the digitization of various industries, including freight logistics. The past two years have seen a surge in investment and innovation in this space, with startups like Forto, Nuvocargo, Zencargo, and Freightify raising significant funding to streamline and automate freight logistics.
A New Era for Freight Forwarders and Customs Brokers
The pandemic has forced freight forwarders and customs brokers to adapt quickly to changing circumstances. With the rise of digitalization, these companies have had to invest in new technologies to remain competitive. This shift towards digitalization has created opportunities for startups to disrupt traditional logistics models.
Vector.ai: The Pioneer of AI-Powered Logistics
In 2021, Vector.ai raised $15 million in a Series A funding round led by Bessemer Venture Partners. At the time, the company was focused on applying machine learning to automate tasks such as accounts payable reconciliation and customs entry preparation. Since then, the company has undergone a rebranding exercise, changing its name to Raft and reframing its AI-powered solutions as "artificial intelligence."
Raft’s $30 Million Series B Funding Round
In a significant development, Raft has closed a $30 million Series B funding round led by Eight Roads VC. The round also saw participation from existing investors Bessemer Venture Partners, Episode 1, Dynamo Ventures, and Moguntia Capital. This investment takes the company’s total funding to almost $50 million.
Raft’s Customer-Facing Solutions
Raft’s platform helps logistics players apply AI to their tasks and customer interactions. The company has a presence in the UK, India, and the US, with customers such as EMO Trans, OIA Global, The Scarbrough Group, NNR Global Logistics, and Navia Freight. Raft’s solutions include:
- Shipment portal: allows customers to share internal data as well as third-party data with their end customers
- Multisource container visibility: provides real-time visibility into container movements
- Emissions reporting: enables logistics players to report on their environmental impact
- Quote-to-book: streamlines the process of generating quotes and booking shipments
Raft’s Growth and Plans
James Coombes, CEO and co-founder of Raft, said: "We recognized early on the pain points around accounts payable reconciliation and customs entry preparation, and we’ve since grown the product to help automate areas such as warehousing, booking confirmations, and more." The company plans to continue expanding its offerings and customer base in the coming months.
Eight Roads’ Investment Thesis
Michael Treskow, partner at Eight Roads VC, added: "The team has leveraged a combination of industry expertise and cutting-edge AI to build a product that delivers immediate value to its customers. There are many more concrete pain points Raft can solve for the industry."
