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Logistics startup Zerobroker has raised $6.5 million in seed funding to broaden its AI-powered platform that removes freight brokers from the delivery course of. The spherical included participation from Flexport, FundersClub, Streamlined Ventures, and others.
The San Francisco-based startup’s know-how goals to scale back prices and streamline logistics for shippers. Led by founder and CEO Georgy Melkonyan, the agency is on a mission to introduce readability and effectivity into an trade usually criticized for being opaque.
“We convey transparency to an trade that traditionally has not been clear,” mentioned Zerobroker founder and CEO Georgy Melkonyan in an interview with VentureBeat. “We present who a shipper is, who the trucker is. There isn’t a hidden data.”
By connecting shippers instantly with carriers, Zerobroker eliminates the 20-30% fee charge historically charged by freight brokers on every transaction. This enables shippers to decrease their transportation prices considerably.
The platform makes use of synthetic intelligence to automate as much as 90% of repetitive duties carried out by logistics groups, corresponding to managing freight, paperwork and funds. It offers real-time visibility into shipments and ensures full compliance.
“With Zerobroker, shippers can create a cargo and the system takes care of the whole lot else – informing clients, suppliers, automating funds and paperwork,” Melkonyan defined. “Everybody will get notified mechanically.”
Since launching in February 2022, Zerobroker has been including 50% extra clients each month and has not misplaced a single consumer. The corporate’s speedy development reveals the demand for digital innovation within the logistics trade.
The brand new funding will assist Zerobroker broaden its engineering group to construct extra superior capabilities into the platform, like long-term contract pricing. The startup additionally plans to broaden assist for extra freight modes like LTL and flatbed.
Zerobroker’s success demonstrates the ability of AI and automation to rework conventional industries. By eradicating middlemen brokers and optimizing workflows, data-driven platforms like Zerobroker are driving down prices and making provide chains extra environment friendly. As Melkonyan famous, “Logistics is the spine of any financial system.”