Freight is an inherently unsexy industry. Yet, being an $800B market with virtually no transparency around pricing, it’s an area ripe for disruption.
Xeneta is the leading ocean freight rate benchmarking and market intelligence platform and index. Shippers use their software to negotiate better rates, benchmark, and understand business performance.
How much is Xeneta doing in ARR?
Xeneta is a pure-play SaaS business that charges enterprises on an annual subscription basis. Pricing varies based on usage, data granularity, and API access, ranging from $25k to $400k per year.
According to CEO Patrik Berglund, the company now serves more than 200 customers and is doing north of $5M in ARR right now. The business has been doubling revenue year over year and is up from roughly $2.5M in ARR twelve months ago.
What is Xeneta’s churn?
In the early days, Xeneta aimed to sell their product to everyone in the freight industry. Today, the company has focused in on an ideal customer profile and has consequently reduced churn. The business is now exhibiting 10-15% gross and 5% net revenue churn annually.
Customer acquisition is an area of improvement for the company, Berglund explained. Xeneta lands new customers for around $40k today and receives payback in about 15 months, on average.
How much has Xeneta raised?
Launched in 2012, Xeneta has grown to scale with $30M in total funding. The company is currently burning more than $300k each month, but is hoping to reach profitability by Q1 2020. At this point, they will look to raise another $20M at a valuation north of $100M.
Xeneta’s team of 85 employees is based in Oslo, Hamburg, and New York.