JAKARTA (TheInsiderStories) – An expedition company, SiCepat has received a Series B funding round worth of US$170 million from Falcon House Partners, Kejora Capital, DEG, MDI Ventures, Indies Capital, Pavilion Capital, Tri Hill, and Daiwa Securities. Last time, the company’ founded by Rudy Darwin Swigo and also The Kim Hai raised Series A funding $50 million in April 2019.
The company was founded in 2014 by the two entrepreneurs, said the funds will be used to strengthen the company’ position as an end-to-end logistics service provider in the Indonesian market and open for the expansion into Southeast Asian market. The operator claimed has been send more than 1.4 million packages per day during 2020.
In the same year, SiCepat Ekspres‘ transactions valued more than Rp3.5 trillion, increased by 194 percent from 2019. According to the CEO, The Kim Hai, the positive achievement was boosted by the soaring volume of HaLU products (Prices Starting at Five Thousand). To date, more than 5 million sellers have become partners of the delivery service company.
He continued, the rising business also supported by an integrated SiCepat services with SiCepat application, WhatsApp Bisnis SiCepat Klik, and responsive customer service. In 2021, the company is targeting an even higher increase in package shipments, by three times or sending up to three million packages per day.
To achieve the target, SiCepat Ekspres will add 100 pick-up drop point outlets (PUDO) and have established retail partnerships with PT LDN, so that SiCepat Point drop points will be available in retail shop. The services now reached more than 1,655 points in Greater Jakarta and Bandung, West Java and will continue to grow across the archipelago in this year.
Recently, Indonesian government allowed foreign investors to open post and delivery service in Indonesia, showed by the new Government Regulation Number 46 of 2021 concerning Post, Telecommunication and Broadcasting. Based on the new policy, the providers are no longer obliged to cooperate with domestic operators if they wish to open a company in the country.
While, Reportlinker rated, the Indonesia road freight transport market is expected to grow above 9 percent during 2020 – 2025. The demand for trucking services in the country is expected to increase, majorly due to the increasing international freight movement and ocean freight, which is a primary demand driver for the domestic trucking industry in Indonesia.
Companies operating in the Indonesian trucking industry are currently focusing on integrating technological advancements, such as an online trucking platform that help the companies in finding clients and reduce empty hauls. The trucking costs in Indonesia are comparatively higher than those other ASEAN countries, primarily owing to the topography of the country.
Road transport accounts for 70 – 80 percent of the total freight volume that is handled annually within Indonesia’ borders. In value terms, the share of the road freight market has stayed between 40 – 50 percent of the total logistics market size.
The e-commerce segment is one of the key drivers of the road freight segment in terms of domestic transportation leg and last-mile logistics. Indonesia has the largest population in Southeast Asia by far, and its e-commerce penetration is still low, making it one of the hottest e-commerce markets in the world. Attracting both local and global companies’ interests, currently, Indonesia has a fast-growing e-commerce scene poised to become a global powerhouse.
E-commerce is expected to expand in double digits in the future in Indonesia. Although the market is not as mature as that in Malaysia or Singapore, the Indonesian population of more than 260 million makes the absolute numbers of growth in the country high, with millions of new online shoppers adding every year.
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