Ofload, an Australian logistics tech startup has received a whopping seed funding of $2.8 million from the venture capital department of a Danish logistics giant Maersk. Global Founders Capital also took part in the round of funding which took place between March and July 2020 amid the pandemic.
Launched only recently in February 2020, Ofload was formerly called Loadsmile and was co-founded by Geoffroy Henry, former Head of Operations of HelloFresh. The logistics startup aims to use the funding to hire strong talent in the tech and operations department that could drive the company’s growth.
About the Aussie logistics tech startup Ofload
The Sydney-based startup connects medium and small-sized carriers with shippers and enables their shipments to be delivered in a more cost-effective and quicker way by using what would have been vacant spaces in delivery vehicles.
Despite being launched only a few months ago, Ofload is being used by over 800 carriers creating a 15,000-odd trucks nationwide fleet that shippers can access easily by placing their goods in trucks that would otherwise have operated considerably below their capacity.
Since the inception of the company, BeCool, last-mile logistics arm of HelloFresh has been an Ofload customer. Mr Henry said the intention of the company is to find a way to use technology to improve and disrupt the road freight efficiency by tackling 3 key areas of waste.
First, 30% of trucks are empty and 50% are under-utilized, he says. On one hand, this impacts profitability but also the cost of freight and on the other hand, there’s the duopoly that exists on top of this industry, so they are trying to empower the long tail of providers, adds Mr Henry.
More about Ofload’s seed funding round
Mr Henry said raising funds during the uncertain times of the pandemic was challenging and that the calls with potential investors had to be done via Zoom.
He experiences a mix of reactions during the entire process with smaller venture capitalists in panic mode willing to support only their current portfolio and then there were the top investors who saw it as an opportunity because tech was more resilient.
Jeppe Høier, Venture Partner at Maersk Growth said the investment in Ofload matched with its container logistics integrator strategy. Maersk has monitored the logistics tech startup space for years and invested in teams across the globe succeeding in bringing carriers and shippers together in the digital space, he said. Mr Høier believes that all supply chain stakeholders will be able to benefit from the technology offered by Ofload.
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