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Kargo, a company that promises freight and logistics companies full visibility into their operations, has raised $25 million in a series A round of funding.
Founded in 2019, Kargo has developed a software-as-a-service (SaaS)-based hardware and software platform that captures and aggregates data from physical loading docks and enterprise software systems — it essentially connects the physical and digital worlds around freight.
The main Kargo dashboard serves as a “single source of truth” for a company’s entire freight and facility operations, integrating data from ERP (enterprise resource planning), TMS (transport management system), and WMS (warehouse management system).
Additionally, the company has developed sensor hardware called Kargo Towers, which lean on edge computing and computer vision to capture data on-site — this enables a significant degree of automation, in terms of giving companies a more complete picture of what’s happening on the ground. This includes being able to identify faulty goods, or verify the size and movement of a particular shipment.
The sensors’ ability to inspect freight automatically means that unloading time can be reduced by up to 48%, according to the company.
“The loading dock is a critical, physical point of contact for supply chain partners where all stakeholders — shippers, LSPs, and carriers — interact,” Kargo’s CEO and founder Sam Lurye said in a statement. “For years, avoidable mistakes like miscounting a load or not catching damaged goods have caused inefficiency across the board.”
Kargo had previously raised a small $6 million seed round of funding, and with another $25 million in the bank, the San Francisco-based company is well-financed to snag a sizable sector of the supply chain management market, which is pegged to become a $42 billion industry within five years.
“There isn’t a single SaaS solution to tackle this problem, so we created our Kargo Towers and the accompanying platform to flag inefficiencies in real time and finally bring visibility to loading docks,” Lurye added.
Kargo’s series A round was led by Sozo Ventures, with participation from Peter Thiel’s Founders Fund, Activant, Human Capital, Strike Capital, Lineage Ventures, and Flexport.
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