Israeli startup Freightos, which has developed a platform for comparing prices, pricing, ordering and payment for real-time transportation and shipping services, will go public via its partnership with blank-check provider Gesher I Acquisition Corp.
The merger is estimated at a market value of $ 435 million and will start trading on Nasdaq under the symbol FROS of Gesher and Freightos. The deal is expected to go through in the second half of 2022, pending the usual closing conditions, such as approval from Gesher and Freitos shareholders and a review by the government.
According to a statement, Freightos has received $80 million in financial commitments to develop the business further and boost profits as part of the agreement.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Headquarters in Jerusalem and Barcelonaת Freightos platform currently serves over 10,000 importers and exporters, 3,500 freight forwarders, and 200 airlines, sea freight, and land freight.
The company’s technology addresses the challenges created in the global supply chain and enables real-time comparison of the transportation rates of different suppliers. Hundreds of thousands of orders are made through it every year. Since 2019, the company has recorded a rapid growth of 213% in orders and over 60% in gross profits.
Zvi Schreiber, chief executive officer of Freightos, expects the company to generate $21 million in revenue this year, noting that the company has only begun to monetize bookings. He forecasts that Freightos will have a gross booking value of $1.65 billion in 2023.
While public markets have declined from their epidemic peaks, Gesher CEO Ezra Gardner views Freightos as a “huge market potential.” “When we invest, we never try to predict the future direction of the market or the stock for the following day or week,” he stated.
The existing shareholders will hold approximately 78% of the merged company. They include FedEx Corporation, SGX Group, Aleph, MoreVC, airlines like Qatar Airways, and Booking Holdings Chairman Bob Mylod are among the existing shareholders in Freightos.
Under the merger agreement, the company raised at least $ 80 million (up to $ 166 million) from investors and strategic players in the shipping industry, including M&G Investments, Composite Analysis Group Inc., and Qatar Airways, the world’s largest air cargo company, which will invest another $10 million in the combined company.
Major owners, both old and new, have signed two-year lockup agreements to show that they trust the company.
Zvi Schreiber, founder and CEO of Freightos said: “In founding the company, we were inspired by the successful digital revolutions in the areas of passenger flights, overnight stays, retail, and many other industries.
“Our goal is to bring efficiency and transparency similar to the international transportation industry, which transports goods worth $ 22 trillion but operates largely non-digitally.
“We are all witnessing what happens when the shipping industry does not operate smoothly and creates a shortage of inventory and rising prices, which challenge businesses and consumers around the world. Our combination with Bridge 1, our becoming public and the raising of additional capital will make it possible to significantly expand the platform and become a leading tool in international transportation.”
In October, Gesher 1, a particular purpose acquisition company, raised $115 million in an initial public offering, including so-called greenshoe shares.
