Qargo – the transportation management solution transforming the logistics industry – has raised $14 million (£11 million) in Series A funding led by Balderton Capital. The new funding will be used to launch in new markets, develop the product, and strengthen the engineering team to keep up with its fast-growing customer base.
The logistics industry is facing significant challenges, including rising operating costs, demands to decarbonize, increases in fuel prices, and a growing wave of cyberattacks, all leading to lower margins. Over the past year, nearly 500 trucking companies collapsed in the UK alone under the weight of these pressures. To succeed, companies must streamline operations and automate manual processes to improve profitability.
Founded in 2020 by Adriaan Coppens (CEO), Joeri de Turck (CTO), and Sander de Wilde (Head of Engineering), Qargo’s solution addresses the needs of logistics companies and empowers them to achieve a more profitable and sustainable future.
Replacing Legacy Software with AI-Powered Workflow Automation
Transportation management software provides enterprise resource planning (ERP) for logistics companies; this market is expected to grow to $19.1 billion by 2032. From order entry to route planning, tracking loads, and invoicing customers, companies need an end-to-end solution that can handle all their needs. Traditionally, the industry has relied on legacy systems built on-premise with clunky, inflexible software or offline Excel spreadsheets.
In contrast, Qargo’s cloud-first SaaS platform integrates seamlessly with customers’ systems, serving as their operating system. Qargo customers can process orders up to 10 times faster than with traditional tools, auto-import PDFs, and automate address lookups to make route planning and deliveries easier.
The planning algorithm automatically combines loads into optimal journeys that minimize distance, duration, and carbon emissions. This allows Qargo customers to reduce “empty miles” – noting that empty or unfilled trucks produce more emissions than all international flights combined. Qargo also enables logistics companies to provide a premium customer experience through a state-of-the-art customer portal and deep integrations with shipper systems, providing real-time visibility into transit for peace of mind.
Qargo’s customers have used the platform to slash fleet mileage and transform operational efficiency. One customer, Anglia Freight, has used Qargo to achieve an annual saving of over 200,000 miles, cut routes by over 20 minutes per vehicle per day, and secure new contracts.
Revolutionizing Logistics
The platform is revolutionary for an industry that largely remains stuck in the past. Qargo has over 140 customers across Belgium, Ireland, the Netherlands, and the UK, including logistics market leaders Altrea Group and Uniserve Group. Last year, the company tripled its annual recurring revenue (ARR). In March 2024 alone, Qargo’s software enabled 175,000 journeys – averaging more than 3,000 trucks a day – and its customers processed more than $45 million (£35 million) in invoiced revenue.
“Road transportation is the backbone of commerce, and there’s no reason why it should be run on decades-old software,” said Adriaan Coppens, co-founder and CEO of Qargo. “We’re proud that we can offer a secure cloud-based solution with AI-based automation in an affordable subscription model that has helped our customers drive efficiencies. Qargo has become a true partner to the transportation companies that are the backbone of many sectors.”
“Logistics is a $5 trillion market globally but is often overlooked by software companies,” said Rob Moffat, partner at Balderton Capital. “Most companies in the sector are still using incredibly dated software and working around it with whiteboards and phone calls. What we love about Adriaan, Joeri, and Sander is that they have completely immersed themselves in transportation management software. They have built a modern SaaS that their users really love. Furthermore, the significant impact Qargo can have on carbon emissions by reducing empty truck miles and improving asset utilization is incredibly important to us.”
