Forto (formerly FreightHub) is a Berlin-based logistics unicorn, launched in 2016, is worth $2.1B after a $250M funding, led by Disruptive.
In a nutshell, Forto offers a digital freight platform making the supply chain more sustainable and frictionless. Its solution is natively digitally designed for sea, air and rail freight.
The logistics industry lacks transparency, and is responsible for 17% of global greenhouse gas emissions. This is a highly fragmented market: the TOP 20 freight forwarders only gained 30-40% market share (DCV annual report 2020).
The logistics market is booming: it is expected to reach +$12Bn by 2027, mainly driven by the rising ecommerce habits and the reverse logistics (return of goods by customers or reusing the packaging).
Forto operates in a highly evolving environment, coming from the consumers’ habits: Checkout.com recent State of Retail report found that 74% of European consumers aren’t willing to reduce their online shopping habits. No need to say the pandemic accelerated the digitization of shopping habits. The European retail ecommerce revenue is forecasted at $568Bn in 2025, from $354Bn in 2019.
Indeed, this has a huge impact on supply chains. Consumers are having more digitized habits, but logistics, especially shipping, still relies on a great number of different participants for a given shipment, they must constantly communicate with each other, and they’re doing it the old way. Shipment is really not tech-first.
Forto’s last funding is one of the major deals with a CVC involved in Q1’22. Let’s break down its history, model and competitive advantage.