Fr8Labs Closes $ 1,5 Million Seed Round Funding
Fr8Labs, a startup at the intersection of artificial intelligence (AI) and freight logistics, has successfully concluded its seed funding round, securing $1.5 million. The funding, led by East Ventures, FEBE Ventures, Kaya Founders, Mulia Sky Capital, Seedstars, Venturra, and angel investors, will primarily fuel the ongoing development and expansion of Fr8Labs’ products.
In the upcoming phase, Fr8Labs plans to enhance its service experience by introducing additional complementary products such as WMS, FX trade, financing, cargo insurance, visibility and rates management, and a marketplace, all seamlessly integrated into a unified platform.
The startup envisions creating an open ecosystem that empowers forwarders to use its platform as a foundational building block for integrating and managing multiple logistics tech applications. This unified experience within a single interface is pivotal, enabling the company to adopt a "best of breed" approach in building a unified digital platform.
Glenn Lai, Co-Founder and CEO of Fr8Labs, expressed gratitude for the trust and support from investors, highlighting the belief that this backing will enhance their logistics technology solutions, providing value across the entire value chain. The focus remains on making players more efficient and competitive in a market brimming with opportunities.
Founded in early 2022 by Glenn Lai and Felix Lu, Fr8Labs is dedicated to digitizing the freight forwarding industry in Asia. The company aims to revolutionize how freight forwarders operate, enabling small and medium-sized businesses (SMBs) and mid-market forwarders to benefit from digital transformation, similar to large digital enterprise forwarders.
According to a report by OECD, the Southeast Asian logistics market presents a substantial growth opportunity, with a total value of approximately $389 billion in 2022 and a projected compound annual growth rate (CAGR) of 11.8 percent over the next 5 years.
Fr8Labs is already serving paying customers in Singapore, Malaysia, Indonesia, Taiwan, and Australia, with plans to expand its operations to cover the rest of Asia.
Investors, including East Ventures and FEBE Ventures, are optimistic about Fr8Labs' potential to transform the logistics industry in Southeast Asia. The founders' technical expertise, operational experience, and deep domain knowledge have garnered support, with a shared belief in the startup's capacity to innovate freight forwarding in the region.
Fr8Labs' innovative solutions, blending AI with an understanding of freight logistics, position it as a transformative force in Southeast Asia's logistics industry, streamlining operations and enhancing efficiency. The startup's comprehensive approach includes a cloud Operating System and a Generative-AI assistant bot designed to serve as an AI co-pilot for forwarders, addressing pain points and facilitating seamless operations. Practical use cases include automating shipment booking workflows and minimizing errors to ensure smoother customs processes.