Berlin-based business says additional funding will be used ‘to drive expansion into new European markets with a focus on strategic partnerships’ such as its JV with Poste Italiane. European digital road freight forwarder Sennder says it has raised $160 million from investors in its latest funding round, with some of the additional funding to be used “to drive expansion into new European markets with a focus on strategic partnerships” – such as its JV with Poste Italiane.
The ‘Series D’ funding round values the Berlin-based business at more than $1 billion. The company has emerged to become something of a consolidator within Europe’s freight tech sector, merging with France’s Everoad last June and buying Uber’s European freight business last September.
Sennder began by specialising in digital brokering within the full truckload market, a segment that is said to account for around a third of Europe’s estimated $400 billion freight sector and which has traditionally relied on small trucking companies and limited technology use. But in addition to providing road freight forwarding services to major shippers like Germany’s Siemens, Sennder wants to offer its software platform as a service so that shippers can digitise their entire road logistics setup, Reuters has reported.
Sennder said $100 million would now be “allocated to digitalizing European trucking by expanding Sennder’s proprietary technology offering”, noting that the additional funding would be used “to drive expansion into new European markets with a focus on strategic partnerships”.
Partnership focus
It added: “Sennder will focus on replicating the success it has had with Poste Italiane where, through the Italian joint venture, Sennder has helped the business save 6% of its €100 million annual spending. Sennder is also enjoying successful working partnerships with Scania and Siemens.”
Outlining that partnership last July with Poste Italiane, Sennder explained that it had formed a €100 million joint venture with Italy’s largest logistics operator, which hoped to generate savings of more than 6% on its full truck load (FTL) spending through the use of Sennder’s proprietary digital freight forwarding platform. Sennder said the established €100 million per year joint venture between Sennder and Poste Italiane focuses on improving the Italian postal and logistics group’s long-haul road transport efficiency and covers Poste Italiane entire FTL network, “moving parcels and mail between all sorting and distribution hubs of the leading Italian postal service provider”.
Since its founding in 2015 by David Nothacker, Julius Köhler and Nicolaus Schefenacker, Berlin-based Sennder said it “has grown remarkably, increasing its headcount to more than 800 employees across its seven international offices. The business will move over 1 million truckloads this year, making Sennder Europe’s leading digital road freight forwarder.”
Through its proprietary technology, Sennder directly connects business shippers with trucking companies, “bringing greater transparency and efficiency to both carriers and shippers”. Sennder added that it was “committed to making the logistics industry fit for a sustainable future”, explaining that “by using data to optimise route efficiency, Sennder reduces the environmental impact of road freight and decreases the cost of transportation”.
It added: “The European logistics and freight sector has a market size of $427 billion. Sennder plans to capitalize on this opportunity by investing $100 million of its Series D financing into growing and developing its innovative technology. The investment will expand the 200-person technology team and accelerate research and development into the automation, digitalization, optimization and decarbonization of road freight.
“Additional funding will be channeled towards driving expansion into new European markets. Sennder will focus on replicating the success it has had with Poste Italiane where, through the Italian joint venture, Sennder has helped the business save 6% of its €100m annual spending. Sennder is also enjoying successful working partnerships with Scania and Siemens.
Supplying transport services to over 10 organizations listed in the German DAX 30, and 11 companies comprising the Euro Stoxx 50, Sennder said it was “well-positioned to connect small and mid-sized trucking companies with established shippers – providing them with access to loads”.
David Nothacker, CEO and Co-Founder of Sennder, said: “I’m very proud to see sennder’s mission and vision become a reality. We are now an established industry player on equal terms with other more traditional sector pioneers, but have maintained our founding spirit. As a data-driven company, we contribute to making the logistics industry fit for a sustainable future; ensuring transparency, flexibility and efficiency in the distribution of goods.
“The COVID-19 pandemic has demonstrated the importance of a digitalized logistics industry. Throughout 2020, we helped our carriers increase their profitability by enhancing operating margins by up to 80% during a challenging time. Sennder is uniquely positioned to drive industry digitalisation, benefiting shippers and carriers alike.”
In 2020 the business undertook two notable transactions: firstly, merging with French competitor Everoad in June and secondly, acquiring Uber Freight’s European business in September.
Sennder claims to offer shippers access to a “connected” fleet of thousands of trucks, noting that “in a traditional industry, Sennder is moving fast and focuses on the digitalisation and automation of all road logistics processes.
Sennder manages over 10,000 trucks across Europe with an over 800-people strong team.
Source: Lloyd´s
