Ukrainian freight tech startup Cargofy hauls home $2 million in seed round

Ukrainian freight tech startup Cargofy hauls home $2 million in seed round

Cargofy, a logistics/freight tech startup hailing from Ukraine has raised $2 million in seed funding. The capital will be used to further scale operations and iterations of the company’s offer, as well as move forward with plans to establish a network of owner-operators drivers, particularly in the U.S..

Using AI to aggregate multiple shipping provider options, Cargofy aims to provide clients with the most cost-effective land shipping options available at any given moment, and to date, has raised a total of $2.5 million.

While last-mile delivery services have seen their fair share of ink over the past few years, not a whole lot of column space has been afforded to long-haul logistics. However, that’s not to say that this field isn’t experiencing innovations of its own.

According to Statista, “In 2021, retail e-commerce sales amounted to an estimated 4.9 trillion U.S. dollars worldwide. This figure is forecast to grow by 50 percent over the next four years, reaching about 7.4 trillion dollars by 2025.” Now that’s a pretty steep hockey stick, no matter how you look at it. Putting Einride aside for a second (if that’s possible?) with e-commerce booming at an unprecedented rate, so too must the logistics industry.

Cargofy founders Stakh Vozniak, and Alex Kovalchuk are harnessing their own experience in the trucking industry and not only jumping on the trend (See also: Yolda, Optiyol, and of course, Sennder), but angling to pull the field with them.

The service as we know it today started out simply enough: the team focused on a narrow segment of immigrants from Eastern Europe, made a localized application, ensured native language support, and left it at that.

Fast forward a few years, and Cargofy is now active across the whole of Eastern Europe, rapidly making headway into the U.S. market, and has clocked over 40,000 journeys through its doors since inception.

Servicing both sides of the equation, Cargofy gives merchants a variety of shipping options within minutes and automatically generates all the required documentation for haulage. And it should go without saying, but shipments can be tracked in real-time via Cargofy.

From the driver standpoint, Cargofy eliminates the need to trawl through various cargo marketplaces and guarantees a rate per mile and a monthly mileage, thereby eliminating any additional risks from carriers associated with choosing the best routes.

“We created Cargofy to simplify life for both truckers and shippers who order transportation. Cargofy helps drivers search for the nearest cargo, generates documents, calculates the ideal route and saves up to $18,000 per year in payments to brokers,” explained CEO Stakh Vozniak. “In a matter of seconds, the customer receives all kinds of delivery options from self-employed carriers, transport, and courier companies, and can choose among thousands of options the most advantageous in terms of time and price.”

Cargofy’s seed funding round was led by JKR Investment Group and saw participation from Flyer One Ventures, and angel investors Murat Abdrakhmanov, Hannu Turunen, and a number of undisclosed individuals.

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