Allcargo Group, which owns global less-than-containerload (LCL) consolidator ECU Worldwide, co-invested with Northstar in logistics startup Stord in 2022.
The parent of the biggest global less-than-containerload (LCL) operator is partnering with a venture capital firm focused on logistics and supply chain to find opportunities to co-invest and help startups test their products.
Mumbai-based Allcargo Group, owner of co-loader ECU Worldwide, has tied up a strategic partnership with VC firm Northstar to jointly explore supply chain investments, the companies announced Tuesday. Allcargo and Northstar already co-invested in the last funding round for warehousing and transportation technology startup Stord and told the Journal of Commerce they are eyeing more joint investments in 2023.
Northstar co-founder and managing partner Amir Karimpour and Allcargo Chief Digital Officer Vaishnav Shetty were introduced prior to the Stord co-investment.
“We’ve worked together in an unstructured way as we got to know each other,” Karimpour said Tuesday. “We’ve had a number of [joint] meetings with founders in our portfolio, and now we have an investment pipeline and the goal is to do it in a structured way.”
For Allcargo, the partnership gives the company a chance to be a part of venture deals across North America, Europe, and Asia, while also introducing early-stage companies to an established logistics provider that is itself seeking to become more digitally oriented. Allcargo launched ECU360, ECU’s digital quoting and visibility platform for shippers and forwarders, in 2018 as it sought to diversify revenue away from being a purely LCL consolidator.
In India, Allcargo owns a diverse set of logistics assets, including a network of container freight stations.
“There’s a similarity in mindset in terms of not resting on our laurels,” Shetty said. “We need to be out there, understanding and learning. Amir and [co-founder Erol Suesler] are dynamic and energetic, and the companies they’ve invested in have been relevant to us.”
Outside of Stord, Northstar has also invested in project44, visibility hardware provider Trackonomy, and Beacon, a UK company that recently pivoted from digital forwarding to visibility.
Dec 09, 2021
Digital Transformation: A Critical Imperative for The Logistics Sector To Stay- Relevant & Succeed
I just wanted to say a big thank you to Mark, Debbie and your teams for the great service we have received from ECU Worldwide. Your willingness and availability at all times are highly appreciated to achieve the service we get from yourselves.
Over a period of many years, Diamond Global Logistics have chosen to place business with ECU Worldwide UK. The service given to us by Ian, mark and their colleagues has been exemplary. In our view, ECU have set standards in customer service that other companies can only dream of. We are approached on a frequent basis by ECU’s competitors but no matter what they claim to be able to offer us, we are never convinced as to their abilities to attain the high standards that we seek in our service providers. In these days of rates being seen to be the all-important factor, with service often being an afterthought by many, ECU are a breath of fresh air in the marketplace. The relationship Diamond Global Logistics has with ECU is one that we place great value upon.