Belfast-based logistics startup Loadar has raised €3.8 million in seed funding to expand its team and bring its freight procurement and management platform to the US market.
The funding round was led by Frontline Ventures with follow-on participation from existing investor Techstart Ventures.
“For the super-large enterprises moving product all over the globe, transport procurement and management is a major expense both financially and in terms of time,” said Ciaran Doherty, founder and CEO of Loadar. “Teams are often individually managing hundreds of carrier relationships, it truly has become an impossible task to do well. Third-party logistic (3PL) companies are inefficient and fail at promoting crucial strategic partnerships between shippers and their carriers. It’s a challenge in need of a solution, and today’s funding announcement is the next major step for us to be able to provide that solution.”
Founded in 2022 by logistics expert Ciaran Doherty, Loadar aims to modernise freight procurement and management for super-large enterprises, promising significant cost savings and operational efficiencies within the global logistics market – a market that is valued at €8.5 trillion in 2023 and expected to be worth over €20 trillion by 2033.
According to Loadar, their platform addresses longstanding inefficiencies in the transport management space, where outdated systems and costly third-party logistics providers dominate.
The platform delivers advanced procurement capabilities, real-time freight tracking, and seamless integration with enterprise systems, making it a potentially ideal solution for global companies managing hundreds of carrier relationships.
Loadar estimates shipping logistics typically cost between 7-8% of a shipper company’s revenue, which is a major expense for super-sized enterprises making billions of dollars a year. Loadar projects users can reduce transport costs by 15%, by streamlining processes. Furthermore, by digitising the entire workflow, real-time oversight of where freight is in the supply chain is made possible, making transport management significantly simpler.
The platform is already operational, with customers including bluechip sustainable packaging providers. Its capabilities align with top priorities for manufacturers: reducing logistics costs and minimising environmental impact.
By optimising transport routes and cutting down empty-leg journeys, Loadar contributes to carbon footprint reduction while driving financial savings.
Will Prendergast, Partner at Frontline Ventures, said: “Managing transport costs and reducing carbon footprint are two of the top priorities for large manufacturers. Loadar is unique in that it tackles both of these topics together, achieving significant cost savings for clients by reducing empty leg journeys for transport companies. It’s a win, win-win scenario for manufacturers, transport carriers and the climate.”
The funding raised will go towards fueling Loadar’s expansion to the US, where the market size represents a huge opportunity for growth and uptake of the Loadar solution. It’ll also fund growing the team which is planned to more than double in size over the next 12 months.
With global supply chains under increasing pressure from events like the COVID-19 pandemic, the war in Ukraine, and shifting international trade policies, solutions like Loadar are becoming indispensable.
Recent reports indicate that 89% of companies experienced supply chain disruptions between 2017 and 2022. Loadar seeks to aid enterprises in navigating these challenges with agility, reducing the risk of costly disruptions.
Jamie Andrews, Partner at Techstart Ventures, added: “Loadar is a wonderful example of innovation born out of Northern Ireland. Ciaran and his team have every necessary attribute to successfully scale what is a clearly needed solution to a problematic link in the supply chain.”
