Finland-based OGOship, an online logistics and warehousing startup offering warehouses and logistics solutions to e-commerce businesses, raised 4 million euros on 22nd November.
Investors: A group of investors, including Flashpoint Venture Capital, Innovestor Ventures, and Maki.vc participated in the round. Currently, 6.3 million euros have been raised by the startup.
Purpose of funding: The startup is preparing funds for international expansion. The startup plans to expand its reach with a custom warehouse network to make it more sustainable despite its good reach. Each year, the company expands its existing warehouse network by four to five countries and increases operations in Germany, Sweden, Finland, and the UK.
Founded in 2011 by Pekka Ylenius and Timo Toivonen, OGOship is located in Helsinki, Finland. OGOship is an online logistics and warehousing startup offering warehouses and logistics solutions to e-commerce businesses helping in supply-chain management. By outsourcing logistics and warehousing, companies can reduce costs. In addition to e-commerce expertise, OGOship enables companies to scale to new international markets without investing in warehousing space, recruiting workers, or coordinating transportation deals. In addition to advocating for industry changes, the startup advocates for policies that promote the sustainability of e-commerce. Their recommendations support non-plastic packaging and recommend avoiding flights in favour of short routes and quick shipment.
What the founder has to say
“We believe every company deserves to be global without wasting the company’s – or the planet’s – resources. And this is exactly what we enable our clients to do. The funds will be used to fuel our international expansion by adding 4-5 countries per year to the existing global warehouse network and to speed up the growth in our current Swedish, Finnish, German and UK markets that have high potential,” said Timo Toivonen, co-Founder and CEO at OGOship.
What the investors have to say
“The total 3PL market size in Europe and the US is estimated to reach $465B by 2022. In Europe, the total estimated market is 500,000 e-commerce retailers, and in 2020 the e-commerce industry growth was 40 per cent y-o-y. OGOship’s team has made tremendous progress during the past two years. The company has entered the UK and German markets while still continuing fast growth in the Nordics. It now has everything in place to accelerate growth further by complementing its pan-European fulfillment network,” said Paavo Räisänen, Partner at Maki.vc.
“We strongly believe in 3PL as the future of logistics. We are especially happy with their sustainable approach. Shorter shipping distances play an important role in the pursuit of sustainable e-commerce. Sustainable delivery is a rising trend in e-commerce – and it’s a factor consumers value and even seek out,” said Alexander Konoplyasty, managing partner at Flashpoint Venture.
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