Indian digital freight forwarder Freightwalla has shut down

Adding to the long list of failed startups is that India’s well-known digital freight forwarding service provider, Freightwalla, has shut down all of its operations, according to local industry sources.

According to sources, the company, which employed around 75 people at full capacity, had already laid off its entire workforce.

Mumbai-based Freightwalla was founded in 2016 by a team of three aspiring techpreneurs, with Sanjay Bhatia as the face of the industry at the forefront.

“The founders were looking for an opportunity for a merger, but this didn’t materialize as they were no longer willing to fund it themselves,” a source said.

“And they couldn’t find new investors either.”

According to sources, the unsuccessful merger bid involved a Singapore-based tech company.

Talks to sell the logistics start-up to a local fintech platform called CredAble also fell through after making some headway.

An aggrieved middle manager at Freightwalla spoke on condition of anonymity The Loadstar that management did not provide an “official” reason for the closure.

“Many of us weren’t even paid a severance payment,” complained the managing director.

Freightwalla boasted on its website of winning $4 million in Series A funding and serving more than 2,000 user customers and 10,000 port pairs through partnerships in over 40 countries and preferential contract agreements with more than 60 shipping companies.

Amid uncertain conditions in the freight market, Freightwalla’s fate is another indication that investors have begun to be more cautious about funding startups, a tech industry observer noted.

Freightwalla made big industry headlines as a full-service digital solutions provider that challenges traditional, relationship-based, mom-and-pop freight brokerage with opaque business methods.

Price transparency and shipment transparency were the key selling points of these logistics technology start-ups, which followed in the footsteps of global pioneers Freightos and Flexport.

The Indian list includes Shipwaves, Freightbro, FreightCrate and Cogoport. However, given the funding issues, it has been difficult for most of them, sources said.

Source: TheLoadstar

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