Logichainge brings efficiency to the transportation sector
Using smart software, Logichainge helps transport companies and freight forwarders process customer orders quickly and accurately. The startup, founded four years ago, is now ready for the next step, and founder Funs Swinkels has successfully secured funding from the LSCF’s Seed Fund Limburg, managed by LIOF. “We want to expand throughout Europe. LIOF provides the capital and opens many doors.”
Meet Logichainge
It’s not yet easy to explain to the layperson exactly what Logichainge does, but given its rapid growth, the transportation industry has no problem with it. Dozens of carriers and freight forwarders are already doing business with the five-person development team at the Venlo-based company, and that number is growing steadily.
Funs Swinkels nods. “The logistics sector continues to grow—just look around you in Limburg. Every day, millions of products are transported from point A to point B—by trucks, trains, ships, and planes. It’s a multi-billion-dollar industry that demands speed, efficiency, and sustainability—as well as digitization and the application of artificial intelligence. It sounds logical, but putting it into practice is difficult. Companies keep working the old way.”
The old-fashioned way
In 2022, entrepreneur Funs Swinkels came up with the idea of doing something with the signals coming from the logistics sector. “Order processing is still largely done in an outdated and error-prone way. Whether the order comes in via email or through an automated system, data gaps arise everywhere that require attention to allow the order to proceed through the internal process.”
There’s a better way, Funs thought, and with a small team, he built a software program that can read and process incoming orders. Fully automatically. “Using Artificial Intelligence. The program recognizes and extracts all relevant data from the order. This enriched and validated data is then delivered directly to the customer’s ERP application.”
“Our system processes the information into usable data, regardless of how the customer submits it. The customer doesn't have to worry about a thing”
Liof & Logichainge
Next step
It took a while to convince the market, but now the time is right for the next step. “Carriers are increasingly recognizing the benefits of outsourcing order processing. This is also because developments in this industry are moving very quickly. Digitalization is a specialized field, just like AI implementation. Of course, you can do everything yourself. But try finding the specialists, and what about ongoing development and support if something unexpectedly goes wrong? We take care of that. And no, we don’t need many people for that. Our system is scalable and, in principle, the same for every client. The next step is further international expansion and developing even better integrations with our clients’ administrative systems—the well-known ERP applications. A platform that any party can connect to, where everything revolves around data quality. Our system processes the information into usable data, regardless of how the client submits it. The client doesn’t have to worry about a thing. With our platform, we aim to attract more logistics companies—often those active in Limburg, but also serving other European countries.”
Shareholder LIOF
However, building the platform with new applications and rolling it out across Europe requires significant capital. This prompted Funs Swinkels to work with his stakeholders to seek out an external shareholder. In March, LIOF came on board. “I’ve worked with the people at LIOF before, including during the startup phase. I’m very happy they’re on board. Venture capital is hard to find and often comes with tough terms. Even more important, however, are LIOF’s network and expertise. Their Investment Managers and Business Developers know the market, contribute ideas, have connections to financial specialists and marketers, and introduce us at trade shows and events. As a startup, that’s priceless. Of course, their financial contribution comes in exchange for a stake in the company, but it’s more than worth it.”
Seed Fonds
LIOF didn’t hesitate when Logichainge approached them. “A great company to have in our portfolio,” says Investment Manager Niek Theunissen. “They have a proven product that aligns with one of LIOF’s core pillars: innovation in digitalization and sustainability within logistics. The software allows trucks to be loaded more efficiently, reduces the margin of error, and cuts labor costs. This primarily strengthens and makes our Limburg logistics sector more competitive, but it also contributes to the sustainability and efficiency of the international logistics sector.”
The financing is provided by the Seed Fund, part of the Limburg Startup Capital Fund. “Through this fund, we help startups move to the next phase,” says Investment Manager Ralf Hendriks. Logichainge has the potential to grow into a company with international impact. At LIOF, we have a fund for every phase. Furthermore, our commitment also helps attract other potential investors.”
Looking ahead
Long-term partnership
Funs Swinkels is counting on a long-term partnership. “Absolutely. We want to expand our reach across Europe. Marketing is expensive, and so is software development. AI may be seen as a magic word, but you still have to take the initiative and build up your own expertise. We now have the resources to do that.”
More information: www.Logichainge.com
Contact
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