Israeli global online freight marketplace Freightos said it acquired Barcelona, Spain-based WebCargoNet, the world’s largest air cargo rate management provider.
Freightos, a sales automation platform for the logistics industry, has raised $23.3 million to date from Aleph, Annox Capital, Israel Cleantech Ventures (ICV), MSR Capital, OurCrowd and Sadara Ventures.
The company, based in Jerusalem with an additional office in Hong Kong, was founded in 2012 by CEO Zvi Schreiber, a British-Israeli serial entrepreneur who previously founded and led multiple high-tech companies, including Tradeum (acquired by VerticalNet), Lightech (acquired by General Electric), Unicorn Solutions (acquired by IBM) and G.ho.st. He has a BA in Mathematics from the University of Cambridge, a PhD in Computer Science from Imperial College London, and an MSc in Theoretical Physics (Quantum Fields) from Imperial College London.
The cash and stock acquisition creates the world’s largest database of air, ocean, and land freight rates with hundreds of millions of international and domestic rates and routes, enabling SMEs and freight forwarders alike the ability to conduct business online with ease, the company says.
“Joining Freightos brings WebCargoNet instant scale and the capacity to rapidly advance the technologies we are bringing to market,” said Manuel Galindo, CEO of WebCargoNet. “Hundreds of global forwarders and dozens of air carriers are sure to benefit as together we continue to make freight quoting and booking online a reality.” Founded by Galindo in 2008, the bootstrapped startup has offices in Barcelona, Miami and Shenzhen.
Freightos focuses on “the shipper-forwarder relationship,” it says, both through AcceleRate which provides multimodal freight rate management and door to door freight quoting, and through its recently released online freight marketplace. “WebCargoNet’s focus has been more on the carrier-forwarder relationship and has also placed more focus on air freight,” it said.
“Beyond breakneck growth, both companies share a number of similarities. Both focus on relentless optimization of pricing and routing with powerful, big data technology. More tellingly, both share the same mission – making global trade frictionless,” said Schreiber.
WebCargoNet will retain its independent brand, bringing air cargo rates online worldwide, complementing the Freightos’ AcceleRate freight rate management solution and the Freightos Marketplace. There will be no immediate changes to current offerings of either company.
Over time, strategic synergies will be leveraged to provide more comprehensive and innovative online solutions to carriers, forwarders, and shippers.
Freightos, with WebCargoNet, has accumulated over 200 million freight pricing data points, establishing the largest freight rate database in the world, it says. The convergence of data from both companies will make it simpler and faster for carriers and forwarders to sell their services, and for importers and exporters to buy, “resulting in smoother world trade.”
Freightos uses a SaaS-enabled marketplace model, and has six offices with over 100 employees around the world. It serves global logistics providers, Fortune 100 companies and major retailers.
Photo: Zvi Schreiber, Founder & CEO of Freightos.