Finnish third-party logistics startup OGOship raises €4 million

Finnish third-party logistics startup OGOship raises €4 million

Helping e-commerce businesses streamline their supply chain, Helsinki-based startup OGOship has raised €4 million in a pre-series A funding round. The funding will be used to drive international expansion plans, with the company adding 4 to 5 countries per year to its existing warehousing network, as well as ramp up operations in Germany, Sweden, Finland, and the UK. To date, the startup has raised €6.3 million

Beginning in 2017, the company set out to build a global e-commerce supply chain solution with a specific focus on sustainability. So focused, in fact, that the company is a strong advocate for no plastic packaging, no diversions, using up-to-the-minute technologies to calculate shortest delivery routes and no airborne transport.

Fast forward almost 5 years, and OGOship now employes a staff of over 50 across 5 countries and has 7 logistics hubs across Europe, all operating under the premise that, “every company deserves to go global without wasting the company’s – or the planet’s – resources.” According to the firm, with their solution, clients can reduce shipment costs by over 40%, increase speed of delivery by over 70%, and reduce CO2 emissions by 96%.

“The total 3PL market size in Europe and USA is estimated to reach $465 billion by 2022. In Europe, the total estimated market is 500,000 e-commerce retailers, and in 2020 the E-commerce industry growth was 40% year-over-year. OGOship’s team has made tremendous progress during the past two years. The company has successfully entered the UK and German markets while still continuing fast growth in the Nordics. They now everything in place to accelerate growth further by complementing its pan-European fulfillment network,” commented investor Paavo Räisänen.

In addition to early backer, who also joined this investment round, OGOship’s 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 especially happy with their sustainable approach. Shorter shipping distances play an important role in the pursuit of sustainable e-commerce. Sustainable delivery is a rising trend in e-commerce — and it’s a factor consumers value and even seek out”, added Flashpoint Venture Capital’ Alexander Konoplyasty.

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