UK-based digital freight forwarding and supply chain finance company, Beacon announced that it secured a US$15 million in its Series A fundraising round, with investors including Jeff Bezos, the founder and CEO of Amazon, and leading US venture capital firm 8VC.
Other participants in Beacon’s initial fundraising include Uber founders Travis Kalanick and Garrett Camp, former Google CEO Eric Schmidt, as well as venture firms such as Neo, Red Sea Ventures, Mantaray and FJ Labs.
In a statement, Beacon said the money will fund new hires, technology and market expansion.
Beacon — founded in 2018 by chief executive Fraser Robinson and chief operating officer Dmitri Izmailov, both former Uber executives and chief technology officer Pierre Martin, who previously worked at Amazon — aims to make trade “simpler, more transparent and more reliable for businesses.”
It also offers air, ocean and truck freight solutions, as well as supply chain finance — all of which can be accessed and managed on a single platform.
Beacon said it already has an established customer base and is growing rapidly, as the company prides in using best-in-class AI, search, optimisation, data science, cloud and automation technologies to unlock significant operational efficiencies.
The platform also combines a real-time view of the global delivery of cargo and a marketplace view of global shipping costs and prices, all powered by machine learning that optimises shipping routes and processes for improved cost, speed and predictability.
"Beacon’s supply chain finance offering sets it apart from traditional freight forwarders by helping to solve one of the biggest challenges faced by importers today – cash flow," it said.
"Suppliers often demand payment before goods are shipped and, with months-long shipment times, importers need flexible finance to meet their working capital needs. To address this, Beacon offers qualifying customers financing within 72 hours, which also entitles them to shipping discounts," it added.
Beacon noted that the freight forwarding and supply chain finance industries are worth an estimated US$1 trillion and US$12 trillion a year, respectively, with the former still a highly fragmented market in which the top ten forwarders globally control just 43%.
It also commented on how many of the logistics incumbents have been slow to digitise, and with fewer than 30% of shippers being satisfied with the customer service they receive, the industry is ripe for disruption.
Beacon co-founder and chief executive Fraser Robinson said the traditional freight forwarder model "remains surprisingly analogue" — using systems and processes that are slow and inefficient, with opaque pricing and limited use of technology.
“Our goal is to disrupt the trillion-dollar freight forwarding market by vastly improving the experience for importers and exporters with a more transparent and smarter shipping product," Robinson said, noting that the company's ability to offer supply chain finance can be transformative for our customers by allowing them to better control and manage their cash flow.
“With digitisation accelerating globally as a result of COVID-19, we believe the future of the traditional freight forwarder is more precarious than ever. Shippers are seeking technology-led products and services that will meet their needs more effectively, enhance their experience and cut their costs. We look forward to meeting that demand,” he added.
