DV Alumni: The Founder of Karla on “Going from Zero to One”
Frederik Schroeder is an alumnus of both BCG and BCG Digital Ventures, having spent nearly the last 10 years from 2012 working across a range of successful ventures and projects. In November last year, he joined forces with serial entrepreneur Philippe Padrock to co-found Berlin-based startup Karla. Karla is reimagining and simplifying the post-purchase experience with its communication platform for merchants and consumers. In February 2022, Karla secured pre-seed funding of €3.4 million. We caught up with Frederik to reflect on his time at BCGDV, learn more about his favorite ventures, and explain why the time is right for Karla.
BCGDV: Frederik, firstly tell us a bit about your background and your time at BCG and BCG Digital Ventures.
I originally studied physics, and was looking for a career path which would be fast-paced while still having an impact. BCG was able to provide exactly that. I joined the Copenhagen office, and discovered it was not just a new job, but many different jobs in one. BCG challenged me to constantly keep learning and exploring. I always knew I wanted to create and build things, so moving to BCG Digital Ventures was a logical next step. BCGDV allowed me to dive into the ecosystem of tech entrepreneurship, venture capital, and business building.
BCGDV: Do you remember the first venture you worked on at BCGDV? Can you tell us about your experience?
Yes, of course, and it’s one I still feel very passionate about. I helped build the freight forwarding company Twill, which is now part of the Maersk product portfolio. Twill solves a problem many clients experienced: an inefficient and cumbersome process to ship containers around the globe. Everything from packing, loading, and shipping a container was based on manual processes, including paper and approval steps. At Twill, we came up with a solution to digitize the process and make it as easy as booking an airline ticket online. A challenging journey, but certainly one of the most exciting ones I had at BCGDV.
BCGDV: You’ve stayed in the field of logistics since leaving BCGDV. Can you tell us about Karla and what inspired you to start building a business?
Having spent almost a decade working in the transportation and logistics sector, I’ve witnessed numerous unsolved pain points. At Karla, we want to reimagine eCommerce deliveries — one of the most frustrating experiences of online shopping — for everyone involved, from carriers and merchants, to end consumers. For consumers, our priority is to give them a convenient delivery experience that’s compatible with their busy lives. This includes offering seamless tracking options for their deliveries, relevant updates and information about their parcels’ status, and other options, such as timed scheduling or rerouting deliveries when necessary. We also offer other post-sales processes, including help around managing claims, returns, refund options and other benefits. Most importantly, we made it a priority to improve consumer convenience, as well as make deliveries more efficient and lower emissions, thereby contributing to greener cities.
BCGDV: That sounds interesting! How does Karla help merchants and carriers?
Merchants or online shops want to make sure their customers are happy when shopping on their websites, as well as during the post-purchase phase, because happy customers who get their deliveries on time are more likely to return. Karla helps merchants reduce their costs because they spend less time and money on angry customers calling in to complain, reschedule, or looking for their deliveries.
Carriers also benefit from an overall improved ecosystem that allows them to be smarter around route planning, improve asset utilization, and reduce first delivery attempt failure rates.
BCGDV: Timing can be crucial when founding a startup — why was the timing right for Karla?
First of all, it’s always the right time to start something that solves relevant pain points. With regards to Karla, we saw a broader pain point in consumers’ delivery experience. It also happened to be a time when, due to the pandemic, we saw a significant increase in online shopping, a consumer behaviour that we know is here to stay. We may see a short-term dip due to the current macroeconomic environment, but most consumers now enjoy online shopping, and don’t want to go back to just in-store shopping. We’re also seeing a significant increase in the number of carriers, which has already grown from typically one per country, to around half a dozen. We expect this number to continue to expand over the next five years, especially due to emerging players who deliver more reliably, or faster, or greener.
This is a favorable trend, in particular with respect to consumer choice and sustainability, however it also increases complexity. To keep costs down, to avoid clogging the streets with delivery vans, and to use resources as efficiently as possible, we need to better orchestrate the last mile of delivery. Most importantly, we’re creating a business that increases convenience for users, while optimizing operations for carriers to significantly reduce CO2 emissions. This is where Karla makes a difference.
BCGDV: How did your time at BCGDV influence how you built Karla?
BCGDV is an exciting place where you learn so much in a short period of time. You run through the entire process of building a venture from scratch really quickly, and you live through this exercise of ‘zero to one’ every few months. Solving a concrete problem, seeing an opportunity, providing a viable business case, proving that it’s technically feasible, building a team and then commercializing the idea — you learn all that at BCGDV.
You also get to work with people who come from different educational systems, different cultures, and this diversity of thought is something I’ve been striving for in building Karla. If everybody in your team has the same background, you likely won’t get the same level of creativity that a diverse team has, and you won’t be able to come up with the best ideas. You simply can’t afford not to in the startup world.
BCGDV: Do you have a favorite career moment from your time at BCG and BCGDV?
There are many, so it’s very tough to pick one. The moments I cherished most were tough situations that were overcome with a team effort. When you realize that you and your team are in the same boat, and you find a new direction or a new way to tackle a problem, plus you have fun doing it — it’s an unforgettable feeling. Many of the friendships I built at the company I still have today. It’s just great to be around a very diverse crowd of people who share different perspectives.
BCGDV: Can you tell us about your experience building, launching, and now leading Karla?
It’s only been a year since we founded Karla, but already so much has happened. In the beginning, it didn’t feel like leading a company. Once you make the choice to start a business you need to start building it from scratch. First, you need a good idea that will become your vision, and then you need to build a team, and potentially raise funds to get all this off the ground. It doesn’t feel like a company in the early days, but if you work hard, it will become one. The bottom line is, you need to make sure what you’re building creates value and truly has a reason to exist in the market and in society. As a result, this will shape your company narrative, convince people of your mission, and also help attract and retain talent.
BCGDV: What advice would you give someone just starting their career at BCGDV?
Explore as much as possible! Take risks and don’t be afraid of making mistakes! They happen, but there’s a strong professional environment around you for support. Really and deeply connect with the people around you. There are so many very talented and smart people from all kinds of different backgrounds across the BCG universe. I can promise you that you’ll learn from them, and they will inspire you. Enjoy the ride!
