Prominent Indian digital freight forwarder 'Freightwalla' has ceased all business operations recently, according to industry sources, becoming one of many failed start-ups.The company is currently closed and all employees have been laid off.
Mumbai-based Freightwalla was founded in 2016 by a team of three budding tech entrepreneurs, with founder and CEO Sanjay Bhatia representing the industry.The company was once among the top ten top freight forwarding startups in the Asia-Pacific region.
According to the sources, the takeover bid was dropped by a Singapore-based technology company.Talks to sell the logistics startup to a local fintech platform called CredAble have also reportedly broken down, although some progress has been made, the report said.
One mid-level Freightwalla manager, who did not want to be named, said there was no "official" reason for the closure."Many of us didn't even get severance packages," the executive complained.
Focused on the Indian Internet market
Founded in 2016, Freightwalla is an India-based international freight forwarding company that helps customers manage supply chains through online tools, including instant freight quotes.The digital freight logistics startup works with companies across multiple industries, including manufactured goods such as toys, home furnishings, textiles, produce and packaged food.
The company provides freight management services such as cross-sea transportation, domestic and foreign inland freight, customs clearance, warehousing, air freight, etc., and combines the most advanced analysis, automation and logistics technology to solve the inefficiency problem in international freight transportation.
The company provides businesses with a platform to plan, book and manage international shipments online.By offering tech-enabled freight forwarding services, the company hopes to provide customers with a great experience at every step of the process, from planning shipments, to automating document workflows and providing critical advice on their operations.
The company claims that their solution can reduce the time it takes to plan shipments by 80%, while saving customers an average of 20% on shipping costs.
Insufficient funds, difficult development
As a one-stop digital solution provider, Freightwalla has challenged the traditional freight forwarding business model based on relationships and opaque operation methods, and has become the focus of the industry.
Including other Indian companies Shipwaves, Freightbro, FreightCrate and Cogoport, etc., following in the footsteps of Freightos and Flexport, global freight digital pioneers, price transparency and freight visualization have always been the core selling points of these logistics technology start-ups.
“The founders have been looking for acquisitions, but they haven’t been able to, and they’re no longer willing to fund themselves,” one of the sources said."They couldn't find any new investors either."
It is understood that Freightwalla, an Indian logistics startup, has received financing.
According to foreign media VCCircle, in 2019, Freightwalla, an Indian logistics technology startup, announced the completion of a $4 million (approximately Rs. 283 million) Series A financing, with investors including Amplo, FJ Labs and Rogue One Capital from the United States. Existing investors including Kae Capital and Tekton Ventures, which had previously invested in the company, also participated in the round.
It is reported that the company will use the funds to drive sales, improve operations and further develop the technology platform.According to the company’s co-founder and CEO Sanjay Bhatia at the time, they planned to use this latest funding for geographic expansion and technology infrastructure improvements.
But most are struggling because of funding challenges, sources said.Meanwhile, Allcargo Group, the parent company of Indian logistics giant and global LCL consolidator ECU Worldwide, has denied reports that it has made any marketing efforts to sell its express logistics unit Gati.
Delivery, a fast-growing Delhi-based e-commerce logistics platform, is also rumored to be bidding for Gati.
Allcargo said in a statement: "The company is not in discussions with anyone about such a sale." The company said: "Gati remains an important and integral part of the Allcargo group and we will continue to focus on strengthening the group's rapid growth. position in the field of express logistics business.”
Release time: 2023-05-29