Alrik targets European expansion to digitalise and decarbonise construction logistics

Alrik, a Swedish logistics software startup, is poised for European expansion after securing €1 million in seed funding from international venture capital firm Pi Labs. Founded in Stockholm in 2023 by experienced entrepreneurs Nici Sundén-Cullberg and Axel Enblad, Alrik has quickly become a notable player in the logistics field.

Alrik addresses a critical issue of sustainability and efficiency in the construction sector's material distribution, aiming to tackle the industry’s considerable carbon footprint from transportation, which accounts for 22% of its total emissions. The company identifies a pressing need for modernisation in logistics and fleet management systems, which have historically been manual, analogue, and fraught with inefficiencies.

By enabling precise monitoring of emissions for materials transported to and from construction sites, Alrik facilitates the achievement of emissions targets for developers and contractors. The digitisation of logistics networks through Alrik’s platform significantly reduces delays, lead times, and costs associated with material delivery.

Partnering directly with distributors, Alrik’s platform helps to monitor and enhance the efficiency of emissions from construction deliveries. Early adopters of the platform have observed substantial benefits, including up to a 10% reduction in fleet emissions and, in one case, a 36% reduction in fleet costs within just six months.

As a Software as a Service (SaaS) provider, Alrik already boasts over 100 clients, encompassing some of Europe's leading distributors such as the global building materials behemoth Saint-Gobain, and northern European leaders STARK Group, Kesko, Bygma, Mestergruppen, along with Swedish firms Karl Hedin and Woody.

Faisal Butt, Founder and Managing Partner at Pi Labs, said: “Innovation plays a role in tackling emissions at every touch point in the global construction lifecycle, and the logistics supply chain and transportation of construction materials has been hugely overlooked until now.  As a  fifth of construction's Co2 emissions come from moving materials to and from sites, we see the global potential for an efficient, unified system to tackle fleet-wide transportation emissions, under the leadership of two seasoned operators like Nici and Axel.”

Nici Sundén-Cullberg, Founder and CEO of Alrik, commented: “Construction sites across Europe continue to grapple with uncertain lead times for materials from a countless number of suppliers and distributors, which hinders their progress. The distributors also need to manage their own logistics network, with a bulk of this still being done over manual phone calls, hand-written records and whiteboards. The lack of coordination leads to poor supply chain visibility, expensive fleet operations and stalled projects on the client side. Alrik effectively eliminates manual coordination with, in many cases, 100 different suppliers and distributors, and unifies the entire supply chain network to deliver projects more efficiently.”

The company previously attracted several business angel investors such as Apple iCloud veteran Olivier Bonnet, former Gorillas COO Adrian Frenzel, Klarna’s Camilla Giesecke, ex-Gumtree technology head Phil Chambers, and various others.