Fr8Labs, a startup based in Singapore and Indonesia, is tackling the digital transformation of Southeast Asia’s logistics industry, which lags behind Western markets in terms of digitization. The founders, Glenn Lai and Felix Lu, aim to bridge the technology gap by introducing a Software as a Service (SaaS) operating system. Unlike Western markets where larger enterprises dominate, the logistics industry in Asia is characterized by smaller and medium-sized businesses (SMBs), leading to fragmentation and a lack of centralized influence for digitization.
Fr8Labs recently secured $1.5 million in seed funding from investors, including East Ventures, FEBE Ventures, Kaya Founders, Mulia Sky Capital, Seedstars, Venturra, and angel investors. Currently serving over 50 customers across Singapore, Malaysia, Indonesia, Taiwan, and Australia, Fr8Labs plans to expand its footprint throughout Asia.
Glenn Lai, Fr8Labs CEO, attributes the technology gap in Asia’s freight forwarding industry to the fragmented nature of the market and the absence of localized software. While developed markets benefit from interconnected digital supply chains, Asian freight forwarders, primarily SMBs, struggle to digitize due to a lack of centralized influence and incompatible digital logistics systems designed for specific markets.
Fr8Labs aims to empower Asian freight forwarders by providing them with a comprehensive Operating System that streamlines their workflow, covering quotation, booking confirmations, shipment confirmation, job accounting, and accounting backend. The platform facilitates collaboration between departments, such as sales and operations, and integrates with communication platforms like email and chat.
To address common challenges faced by freight forwarders, Fr8Labs is developing additional products, including features that enable freight forwarders to offer cargo insurance, foreign exchange (FX) trade, and financing facilities to their customers. The startup plans to expand its platform further by incorporating FX trade, financing, cargo insurance, rates management, and a marketplace. Fr8Labs envisions creating an open ecosystem that seamlessly integrates with various logistics tech software, similar to the interconnected devices within the Android or Apple ecosystems. The goal is to enhance the overall value chain in the logistics industry by providing a unified and efficient platform for freight forwarders.
