Freightos IPO shows platform’s place in digital transformation

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Integrated payments and supply chain digitization are coming to a public market near you.

Headlines abound announcing the end of Wall Street’s love affair with special purpose acquisition companies (SPACs).

But there are still signs of activity in the space, where platforms are attracting attention and have chosen to go public by merging with a SPAC.

As reported, the freight booking and payment platform Freightos Group will go public through a merger with a special purpose acquisition company (SAVS) Acquiring Gesher.

The rise of platforms has been the hallmark of all kinds, across all verticals. We could compare the digital shift to one that is also inspired by Amazon, Uber and Expedia. In other words, the process of matching supply and demand should ideally be simple and intuitive, just a few clicks away.

Freightos management previously said $22 trillion worth of goods crossed borders, according to measurements last year. But of course there have been significant supply chain issues that have hampered the movement of inventory in a key part of the global economy that is still paper-based, inefficient and fraught with friction.

Also read: Israeli freight platform Freightos to go public via PSPC

Freightos said in the announcement that it works with more than 10,000 importing and exporting companies, 3,500 freight forwarders and 200 carriers – in total fulfilling “hundreds of thousands” of international freight bookings each year.

Dig a little deeper Freightos depotsand the third-party logistics segment represents a $1.8 trillion opportunity, just a few years to 2026. The gross value of bookings, projected for 2023, could be worth around $1.7 billion.

As for inefficiencies, the company said in the filing that more than two hours are spent managing each individual shipment, which in turn involves the efforts of more than 30 people per shipment.

Freightos, the company said, exists as a marketplace serving end customers in a similar way to Booking.com. The presentation slides show that 35% of air cargo capacity is digitized and 41% of ocean capacity is being digitized.

The match between buying and selling, the company said, leverages 3 billion data points. The company’s financial statements show total revenue of $16.6 million is on track to reach $21.1 million in 2022, and about $39.5 million next year.

A recent interview with PYMNTS shows that APIs have their place in freight and logistics transformation.

Freightos executive Ruthie Amaru told Karen Webster of PYMNTS in an interview in August 2021 that her company has made significant investments in intellectual property aimed at creating a secure and compliant billing system that businesses can implement. works throughout the cargo life cycle.

“If you’re going to identify a manufacturer somewhere in the world and you don’t know how much it costs to ship their goods to you, that’s a lot of uncertainty,” Amaru added. “So plugging into our platform, which provides freight certainty, gives you a guaranteed price. The ability to know you can actually ship it, connected to the ability to find and find manufacturers around the world, suddenly becomes very powerful.

Also read: Israeli freight platform Freightos to go public via PSPC

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NEW PYMNTS DATA: THE CUSTOM PURCHASING EXPERIENCE STUDY – MAY 2022

About: PYMNTS’ survey of 2,094 consumers for The Tailored Shopping Experience report, a collaboration with Elastic Path, shows where merchants are succeeding and where they need to up their game to deliver a personalized shopping experience.

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