JAKARTA (TheInsiderStories) – Indonesia’ freight logistics firm, Kargo Technologies, has secured Series A Funding round worth of US$31 million led by Silicon Valley-based Tenaya Capital. Other investors are Sequoia India and Southeast Asia, Intudo Ventures, Coca-Cola Amatil, Agaeti Convergence Ventures, Alter Global, and Mirae Asset Venture Investment.
As part of the round, the marketplace provider was also to secure debt financing from some of the largest regional banks and financial institutions. The funding round closes as Kargo joins the battle to curb the growing COVID-19 outbreak in the archipelago.
The funding comes roughly one year after Kargo’ $7.6 million seed round was led by Sequoia India. It was one of the largest recorded seed-stage deals in the region at the time and featured several other prominent global tech investors.
Seed backers included Uber co-founder Travis Kalanick’ 10100 Fund, China’ Zhenfund, Intudo Ventures, ATM Capital, Innoven Capital, and local businessmen Pandu Sjahrir’ Agaeti Ventures, co-founder Indonesian hedge fund Northstar Group Patrick Walujo, and Cardig International CEO Diono Nurjadin also made personal investments.
While it may sound like an industry trope, Kargo can aptly be described as Indonesia’ ‘Uber for logistics,’ as the team aims to shift all logistics transactions in the country from offline to online, thereby addressing enormous inefficiencies faced by local shippers and transporters today.
The startup was co-founded by two entrepreneurs with expertise from both the logistics and technology worlds. Between 2013 and 2018, Tiger Fang oversaw the international expansion of Uber and served as its general manager in Western China and then in Indonesia.
He also held key positions at Rocket Internet, Lazada Group, and Bank of America Merrill Lynch. While, Yodi Aditya serves as Kargo’ CTO and worked previously with aircraft route optimization, enterprise software, and real-time payment technology.
Efficiency in the local logistics game is hindered by a multitude of geographic obstacles, a lack of key infrastructure in remote and rural areas, and an archaic industry norm of coping with middlemen that routinely hike up prices for end-users.
Because of these issues and more, local businesses (especially those in the budding e-commerce space) commonly cite logistics as one of the biggest pain points in their Indonesian operations. This, in turn, represents a huge market opportunity for innovative companies looking to solve problems by leveraging new technology.
Accenture’ managing director Mohammed Sirajuddeen recently said, Indonesia has the potential to become a fully-integrated ‘quantum commerce’ environment if it can solidify four key structural elements such as e-marketplaces, social media platforms, e-payments platforms, and logistics networks.
Kargo’ current core members hail from global tech juggernauts such as Uber, Amazon, Facebook, and top logistics companies like DHL and APL. The company has already amassed more than 6,000 active shippers and a network of more than 50,000 trucks across the nation.
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