Qargo, the next-generation transportation management system (TMS), has secured a $6 million Seed Round led by Fred Destin at Stride.VC (an early backer of companies like Deliveroo and Cazoo). The round also included participation from prominent executives Stephane Kurgan (former COO of King) and Breon Corcoran (CEO of WorldRemit and former CEO of Betfair).
Qargo plans to use the funding to expand internationally and scale its sales and customer excellence organization.
Driving the Economy Forward
Road transportation is critical to trade; it supports the entire continent’s consumption, construction, and commercial activity. It truly drives the economy. Yet, despite playing such a critical role in our supply chains and overall success, the transportation sector remains woefully inefficient. The industry frequently suffers from ineffective scheduling, a lack of optimization, and low levels of customer satisfaction.
The transportation industry is a complex ecosystem of small local companies interspersed with larger international players. This creates an intricate web of relationships, routes, and contracts that are typically managed either manually or with antiquated software. The majority of the sector is under-equipped for the challenges it faces.
Bringing Modern Tech to Freight
Transportation is a massive segment that has yet to benefit from the “consumerization of tech,” user-centered design, and AI-powered optimization. If software is “eating the world,” transportation is one of the last major industries it has yet to feast on.
Qargo was founded by serial entrepreneurs Adriaan Coppens and Joeri De Turck, the duo behind OTA Insight, a travel management company that raised over $100 million. At their previous venture, the pair served as CEO and CTO, respectively.
Based in London and Ghent, Coppens and De Turck – alongside co-founder and engineer Sander De Wilde – are taking on the challenge of building a next-generation TMS for road freight. By immersing themselves in the “pain points” of transportation companies, Qargo developed an all-in-one TMS that:
- Streamlines administration through user-friendly design and workflow automation.
- Reduces wasted mileage via optimized planning and modernized communication.
Developing a next-generation road TMS is extremely complicated once you dive into the details,” says Joeri De Turck. “You have to be a little crazy to go after it, and you need exceptional engineering, product, and design capabilities. It’s the kind of challenge we just had to go after.
A Greener Future for Logistics
Central to Qargo’s mission is the ability to deliver immediate environmental impact and emission reductions by making road freight radically more efficient.
“Trucks drive empty one-third of the time, which produces more emissions than all international flights combined,” reports Coppens, Qargo co-founder and CEO.
Qargo is a prime example of the next wave of disruption: vertical SaaS. These startups create software designed for highly specific use cases within niche industries. One after another, massive industry segments like road transportation are taking significant steps to digitize their businesses, creating huge opportunities for software startups like Qargo.
The Qargo team spent nearly two years in R&D before releasing their first product in 2022 and is already live with a number of transportation companies.
“To deliver value, you have to solve hard problems,” says Fred Destin. “At Stride, we are big fans of teams who go after overlooked and underserved markets and have done the hard work of understanding their customers’ unique needs. The Qargo team has demonstrated this amply.”
