Logistics Startup Kargo Raises $25M, Plans to Triple Headcount
In the freight industry, one wrong move is all it takes to delay shipments that result in headaches and lost revenue. Luckily, one San Fransico startup is creating tech to remove human error from the shipping process.
Logistics startup Kargo announced on Wednesday that it raised $25 million in a Series A round. The funds will be used to launch a large hiring initiative over the next six months as the company looks to triple its workforce.
Like any great logistics company, Kargo marries tech and humans to ensure freight is delivered accurately and on time. While many companies focus on tracking the entire journey of a freight load, Kargo focuses on optimizing one crucial phase in the process — the loading stage.
The loading dock is the last stage where the product can be verified before it is shipped to its destination. And while human verification can ensure the cargo being shipped is not overweight and doesn’t have damaged or missing product, there is always the possibility of human error. Kargo hopes to eliminate that possibility with its sensing hardware and software.
To do this, Kargo created sensing towers that, when installed in shipping facilities, use an array of sensors to detect the weight, temperature and expiration dates of the cargo. The towers can even detect logos on the product to ensure the correct items are loaded into trailers.
The data compiled by the towers is sent to the Kargo platform, which populates all of the acquired data. Video of the cargo being scanned and loaded onto trailers is also uploaded to the platform.
With its hardware and software combo, the company creates what it calls a “real-time source of truth” and brings transparency to the supply chain process.
“The loading dock is a critical, physical point of contact for supply chain partners where all stakeholders — shippers, LSPs, carriers — interact. For years, avoidable mistakes like miscounting a load or not catching damaged goods have caused inefficiency across the board,” Sam Lurye, Kargo CEO and founder, said in a statement. “There isn’t a single SaaS solution to tackle this problem, so we created our Kargo towers and accompanying platform to flag inefficiencies in real-time and finally bring visibility to loading docks.”
The company was founded in 2019 and currently employs around 20 individuals. With the new funding, Kargo is looking to triple its headcount and open satellite offices. To continue developing its freight technology, Kargo will focus on recruiting software and hardware engineers.
According to Crunchbase, Kargo has raised a total of $31 million since launching.