DexFreight CEO Sees Blockchain, AI as Powerful Logistics Combination

ThirtyK: Why did you choose this approach?

Rajbhandari: Our end customers are shippers and carriers. They cannot operate in a volatile environment. If we use a single token and that token gets traded a lot, we fear that shippers and carriers would stop using our platform. U.S. and Canadian shippers and carriers value reputable, technology providers. If we go a traditional ICO route of fund raising and registering in not-so-well-reputed foreign jurisdictions, trust might be a problem. We want to do things the right, legal way, in compliance with the SEC and other regulatory agencies. One token will be traded and the other will be a form of payment. The security token is a representation of security in the company. The other token, the stable token, will be used for escrows, payment, monetizing data and to access third-party value-added services. It works as a reward for companies that perform well, like airline miles.

“Bigger companies see us as a disrupter. No one likes to work with a disrupter.”

ThirtyK: What are your specific goals for crowdfunding?

Rajbhandari: Our goal is to raise up to $50 million.

ThirtyK: What gives you confidence that your project will succeed in this increasingly crowded space?

Rajbhandari: Our model is based on the simplicity of finding carriers. The platform will verify carriers by integrating with the Federal Motor Carrier Safety Administration and other agencies. Proof of transactions is maintained in the blockchain. The counterparties do not have to worry about tampered-with transactions. That should reduce disputes, which are expensive.

Data Control

ThirtyK: You will try to solve the issue of data control, too?

Rajbhandari: You pay a lot to get in current platforms and do not have much control over data. Software providers collect data from users and sell [the information] to third parties. The users do not get the proceeds. Our platform will not own the data, which is a paradigm shift in logistics software.

ThirtyK: What challenges are you facing?

Rajbhandari: In logistics, you need to have a lot of cash. What we’ve seen in the past 10 to 15 years is logistics relies on acquisitions to increase revenue and market value. We fear we may have to do something similar. As a start-up, it’s not easy to acquire another startup. (Also), there’s a huge disparity among companies. You have to market to small companies differently than to a bigger company. You have to demonstrate that the platform will save money. There’s going to be an educational component, and that’s expensive. Bigger companies see us as a disrupter. No one likes to work with a disrupter.