A British logistics start-up backed by the Amazon founder Jeff Bezos and other titans of the technology world is raising tens of millions of pounds to help it satisfy booming demand for its services.
Sky News has learnt that Beacon, which helps companies to manage their supply chains more efficiently, has sealed a $50m (£37m) Series B funding round led by Northstar.vc, a leading venture capital investor.
Upper90, another investor in early-stage companies, is also participating in the fundraising as a new investor in the business.
Launched in 2018, Beacon uses artificial intelligence and cloud-based technology to improve operational efficiency for customers organising international trade in their products.
It provides services including global ocean, air and road freight, customs clearance, insurance and supply chain finance, all of which can be accessed and managed on a single platform.
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The company helps importers to address cashflow needs by offering financing within 72 hours – a critical issue for importers who invariably have to pay suppliers before goods begin a shipment journey that can take several months.
Headquartered in London, it was founded by Fraser Robinson, chief executive, and Dmitri Izmailov, chief operating officer, two former Uber executives.
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Beacon boasts one of the most stellar investor registers of any early-stage company in the world, with Eric Schmidt, the former Google chief executive, Travis Kalanick, the Uber Technologies founder, and Marc Benioff, the Salesforce founder, chairman and chief executive, among its backers.
The venture capital firms 8VC and Expa are also among its shareholders.
Mr Bezos, Amazon’s executive chairman and one of the world’s wealthiest people, is understood to be participating in Beacon’s Series B round alongside other existing investors.
Freight forwarders act as agents between exporters and importers, taking a fee for the service they provide in arranging transport for goods from factories prior to their shipment.
They also administer relevant paperwork required for exports.
The industry’s largest players include DHL, the global logistics group, and Kuehne + Nagel, although the sector as a whole is regarded as having been slow to embrace the digital age.
Beacon was set up to drive efficiencies in a historically fragmented industry, but has been a big beneficiary of the havoc that COVID-19 has wreaked on global supply chains.
One source close to the company said this weekend that since unveiling its $15m (£11m) Series A fundraising in May 2020, it had seen “hyper-growth”, with revenue growing 12-fold in the last year.
It now employs 180 people, up from 24 18 months ago, and has expanded into Asia through the opening of an office in Hong Kong.
Demand for more efficient logistics operations has been driven by soaring freight rates, labour shortages and consumer demand for more rapid and reliable delivery times for goods purchased online.
The new funding, which could be announced early this week, is expected to be used to further expand Beacon’s workforce, develop its technology and expand into new markets.
It was unclear at what valuation the capital was being injected.
“I sent him a reminder yesterday. I told him the clock is still ticking and it’s now five months from the March deadline, which I’m told is still achievable by other professionals.
“So let’s get on with it, that’s all we want. Get on with it.”
This breaking news story is being updated and more details will be published shortly.
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A £15bn merger between two of the UK’s biggest mobile networks could get the green light – if they stick to their commitments to invest in the country’s infrastructure, the competition watchdog has said.
The Competition and Markets Authority (CMA) said the merger of Vodafone and Three had “the potential to be pro-competitive for the UK mobile sector”.
Announced last year, the proposed £15bn merger would bring 27 million customers together under a single provider.
The watchdog previously warned that tens of millions of mobile phone users could end up paying more if the merger went ahead.
However, the two groups recently set out plans to protect consumer pricing and boost network investment.
The CMA has now laid out a list of “remedies” required for the deal to go-ahead.
They include the networks committing to freezing certain tariffs and data plans for at least three years to protect customers from short-term price rises in the early years of the network plan.
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8:17
From September: ‘A transformation for the UK’
Stuart McIntosh, chair of the inquiry group leading the investigation, said on Tuesday: “We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed.
“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.
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“A legally binding network commitment would boost competition in the longer term and the additional measures would protect consumers and wholesale customers while the network upgrades are being rolled out.”
Today’s announcement is provisional, with a final decision due before 7 December. The inquiry group is inviting feedback on today’s announcement by 5pm on 12 November.
The CMA also published a list of potential solutions – which it called remedies – to issues it identified with the merger.
If the networks want the merger to go ahead, the watchdog requires Vodafone and Three to:
• Deliver a joint network plan to set out network upgrades and improvements over eight years;
• Commit to keeping certain existing tariff costs and data plans for at least three years to protect customers from price hikes;
• Commit to pre-agreed prices and contract terms so Mobile Virtual Network Operators (MVNOs) – mobile providers that do not own the networks they operate on – can obtain competitive wholesale deals.
Vodafone and Three are two of the biggest mobile firms in the UK, and their networks support a number of MVNOs including Asda Mobile, Lebara, Voxi, and Smarty.
Responding to the watchdog’s announcement, a spokesperson for Vodafone on behalf of the merger said: “The merger will be a catalyst for positive change.
“It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country.
“The merger is also closely aligned with the government’s mission to drive growth and to encourage more private investment in the UK.”
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Earlier this year, Three’s chief executive hit out at the UK’s “abysmal” 5G speeds and availability as he urged regulators to approve the company’s merger with Vodafone.
Robert Finnegan noted his firm’s “cash flows have been negative since 2020 and our costs have almost doubled in five years, meaning investment in [the] network is unsustainable”.
“UK mobile networks rank an abysmal 22nd out of 25 in Europe on 5G speeds and availability, with the dysfunctional structure of the market denying us the ability to invest sustainably to fix this situation,” he added.
Business leaders expressed frustration with ministers on Monday amid a growing budget backlash that bosses said would trigger an “avalanche of costs” and leave them with no choice but to slash investment and increase prices.
Sky News has learnt that bosses of large retail and hospitality companies and trade associations told Jonathan Reynolds, the business secretary, that last week’s budget risked damaging consumer confidence and exacerbating challenges facing the UK economy.
Among the dozens of companies represented on the call are said to have been Burger King UK, Fuller Smith & Turner, Greene King, Kingfisher and the supermarket chain Morrisons.
Mr Reynolds is said to have acknowledged that Rachel Reeves‘s inaugural fiscal statement had “asked a lot” of British business, with James Murray, the financial secretary to the Treasury, understood to have described it as “a once-in-a-generation budget”, according to several people briefed on the call.
One insider said that Nick Mackenzie, the chief executive of Greene King, had highlighted that the increase in employers’ national insurance (NI) contributions would cause “a £20m shock” to the company, while Fullers is understood to have warned that it would be forced to halve annual investment from £60m to £30m as a result of increased cost pressures.
Rami Baitieh, the Morrisons chief executive, told Mr Reynolds that the budget had exacerbated “an avalanche of costs” for businesses next year, and asked what the government could do to mitigate them.
Sources added that the CBI, the employers’ group, said its impact would be “severe”, while the British Beer & Pub Association added that there was now a disincentive to invest and flagged “a tsunami” of higher costs.
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How will the budget affect businesses?
The range of comments on the call with ministers underlines the scale of discontent in the private sector about Labour’s first budget for nearly 15 years.
Only a small number of interventions during the discussion are said to have been in support of measures announced last week, with the Federation of Small Businesses understood to have praised the doubling of the employment allowance, which would see many of the smallest employers having their NI bills cut by £2,000.
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The Department for Business and Trade has been contacted for comment, while none of the companies contacted by Sky News would comment.