To help the e-commerce business streamline its supply chain, Helsinki-based startup OGOship has raised 4 million in a pre-Series A funding round. The funds will be used to drive international expansion plans, adding four to five countries annually to the existing warehousing network and expanding operations in Germany, Sweden, Finland and the United Kingdom.So far, startups have raised 6.3 million
Beginning in 2017, the company embarked on building a global e-commerce supply chain solution with a particular focus on sustainability. In fact, the company is so focused that it strongly supports not using plastic packaging or diversion, using the latest technology to calculate the shortest delivery route, and not air transportation.
Fast-forwarding for almost five years, OGOship now employs more than 50 staff in five countries and has seven logistics hubs throughout Europe. According to the company, the company’s solution enables clients to reduce shipping costs by more than 40%, increase delivery speeds by more than 70%, and reduce CO2 emissions by 96%.
The total market size of 3PL in Europe and the United States is estimated to reach $ 465 billion by 2022. In Europe, the estimated market totals 500,000 e-commerce retailers, with 2020 e-commerce industry growth of 40% year-on-year. The OGOships team has made tremendous progress over the last two years. The company has successfully entered the UK and German markets while continuing to grow rapidly in Scandinavia. Paavo Risnen, an investor at Maki.vc, commented that by complementing the pan-European fulfillment network, everything is in place to further accelerate growth.
In addition to Maki.vc, an early backer who also participated in this investment round, the OGOships pre-series A round was led by Flashpoint Venture Capital and Innovestor Ventures.
We strongly believe in 3PL as the future of logistics. We are particularly pleased with their sustainable approach. Shorter haul distances play an important role in the pursuit of sustainable e-commerce. Sustainable delivery is an uptrend in e-commerce and is a factor that consumers value and pursue, Flashpoint Venture Capital Alexander Konoplyasty added.
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