UK Digital Freight Forwarder Beacon Closes $15 Million Series A Fundraise, With Investment From Jeff Bezos
01 Jun, 2020, 07:00 BST
Highlights:
- $15 million raised in Series A fundraise
- Investors include Amazon founder and CEO Jeff Bezos and leading US venture capital firm 8VC
- Beacon customers benefit from optimised shipping routes and processes that reduce costs, while increasing booking speed and transport efficiency
- The company is using best-in-class AI, search, optimisation, data, cloud and automation technologies to drive disruption and operational efficiencies in the $1 trillion global freight forwarding industry
- Beacon is led by strong management team from the likes of Uber, Amazon and Google, with expertise across technology, logistics, finance and hyper-growth
- Funds will enable further investment in people, technology and market expansion
LONDON, June 1, 2020 /PRNewswire/ -- London-based Beacon, the next generation freight forwarding and supply chain finance company, has raised over $15 million in its Series A fundraising round, with investors including Jeff Bezos, the founder and CEO of Amazon, and leading US venture capital firm 8VC.
Beacon was founded in 2018 by CEO Fraser Robinson and COO Dmitri Izmailov, both former Uber executives. They were joined by CTO Pierre Martin, previously at Amazon, bringing together a management team with deep expertise in logistics, technology, finance and hyper-growth, which is committed to radically simplifying how companies import and export goods globally.
The freight forwarding and supply chain finance industries are worth an estimated $1 trillion and $12 trillion a year, respectively, with the former still a highly fragmented market in which the top ten forwarders globally control just 43%. Many of the logistics incumbents have been slow to digitise, and with fewer than 30% of shippers being satisfied with the customer service they receive, the industry is ripe for disruption.
Beacon already has an established customer base and is growing rapidly, with a mission to become a global leader in logistics and supply chain finance by making trade simpler, more transparent and more reliable for businesses. It offers a full range of services, including global ocean, air and truck freight, together with supply chain finance, all of which can be accessed and managed on a single platform.
The company uses best-in-class AI, search, optimisation, data science, cloud and automation technologies to unlock significant operational efficiencies. The platform combines a real-time view of the global delivery of cargo and a marketplace view of global shipping costs and prices, all powered by machine learning that optimises shipping routes and processes for improved cost, speed and predictability.
Beacon's supply chain finance offering sets it apart from traditional freight forwarders by helping to solve one of the biggest challenges faced by importers today – cash flow. Suppliers often demand payment before goods are shipped and, with months-long shipment times, importers need flexible finance to meet their working capital needs. To address this, Beacon offers qualifying customers financing within 72 hours, which also entitles them to shipping discounts.
Participants in Beacon's initial seed round included Uber founders Travis Kalanick and Garrett Camp, former Google CEO Eric Schmidt, as well as venture firms such as Neo, Red Sea Ventures, Manta Ray and FJ Labs. The money raised in this Series A round will be invested in new hires, technology and market expansion.
Beacon co-founder and CEO Fraser Robinson said: "Beacon has attracted investment from some of the best minds in business and technology. The traditional freight forwarder model remains surprisingly analogue, using systems and processes that are slow and inefficient, with opaque pricing and limited use of technology.
Our goal is to disrupt the trillion-dollar freight forwarding market by vastly improving the experience for importers and exporters with a more transparent and smarter shipping product. We also believe that our ability to offer supply chain finance can be transformative for our customers by allowing them to better control and manage their cash flow. We have built a team with deep expertise in technology, logistics and finance in a short period of time – these new funds will enable us to continue to strengthen that team and invest in our technology, while also increasing our international presence.
With digitalisation accelerating globally as a result of COVID-19, we believe the future of the traditional freight forwarder is more precarious than ever. Shippers are seeking technology-led products and services that will meet their needs more effectively, enhance their experience and cut their costs. We look forward to meeting that demand."
Management biographies:
Fraser Robinson, Co-Founder & CEO
- Head of Business for EMEA at Uber: Led Uber's strategy, investments partnerships in EMEA – including $3.5bn investment by Saudi Public Investment Fund (PIF) and $3.6bn merger with Russia's Yandex.Taxi.
- Prior to Uber, held senior positions in e-commerce and tech, including Commercial Director of lastminute.com.
- Princeton BA.
Dmitri Izmailov, Co-Founder & COO
- General Manager of Uber Russia: Scaled Uber Russia 1,000x over 4 years, expanding service from 2 to 16 cities across Russia. Grew team from 3 to over 100 employees and 800 contractors.
- Prior to Uber, Engagement Manager at Oliver Wyman in New York.
- INSEAD MBA.
Pierre Martin, CTO
- Head of Engineering, Amazon Logistics: Built product to deliver hundreds of thousands of containers of freight globally and cloud/AI to optimise millions of package routing decisions per second.
- Head of Engineering, Live at Prime Video: Built sports streaming platform.
- Prior to Amazon, senior product roles at Microsoft.
- PhD in Computer Engineering, University of Illinois.
Related Links
SOURCE Beacon