JAKARTA (TheInsiderStories) – A leading Indonesian logistics tech player, Waresix, has successfully raised a Series A of funding round of US$14.5 million, less than eight months after sealing its pre-A of $1.6 million round.
The funding was led by East Ventures Growth, a Southeast Asia growth fund set up by regional VC firm East Ventures, with participation from Indonesia’s SMDV and Jungle Ventures, a Singapore-based VC that invests in category leaders.
Waresix management said this funding will be invested in expanding Waresix’s land transportation service and further strengthen its warehousing network to second-tier cities.
While, business owners, warehouse and truck providers, can leverage Waresix’s data analytics to better fulfill the needs of the country’s logistics market, which is expected to reach $240 billion by 2020.
The participation of EV Growth in this Series A round marks the third time East Ventures has invested in Waresix. East Ventures also participated in Waresix’s seed funding round in February 2018 and pre-Series A round of $1.6 million in October 2018.
Waresix’ co-founder and CEO Andree Susanto said the company will connect shippers and businesses with warehouses and trucks available throughout Indonesia, providing better transparency, quality service, and increasing revenue for asset owners. Its vast ecosystem now reaches more than 20,000 trucks and 200 warehouse operators throughout the archipelago.
“We’re leveraging our extensive warehouse network to generate demand and create a network effect for our trucking ecosystem. By expanding into the trucking business, we can maximize space utilization and also avoid trucks with empty miles,” he said.
Waresix sees that the composition of the Indonesian archipelago has produced one of the highest logistics costs in Asia, which constitutes almost a quarter of the country’s gross domestic product (GDP) of $1 trillion.
In the 2018 Logistics Performance Index, the World Bank found that while Indonesia’s logistics sector has increased in recent years, the country’s logistics cost-to-GDP ratio of 24 percent still lags behind regional and Thai counterparts.
These high logistics costs not only hamper the competitiveness of the country’s industry but also add to the costs of Indonesian SMEs in doing business in the domestic economy. Meanwhile, co-founder Edwin said, the startup will further invest in R&D to enhance its data analytics capabilities.
“Our technology will seamlessly merge data analytics with the logistics infrastructure to give businesses complete control of their goods and maximize our suppliers’ space utilization. This way, Waresix ensures fast and reliable transportation, while keeping supply chain costs low and predictable,” he said.
East Ventures Managing Partner Willson Cuaca believes logistics plays an important role in Indonesia’s economic growth. However, there are many things that must be improved in Indonesia. The average logistics costs in Indonesia still reach 24 percent of national GDP, and 74 percent of this cost is spent on transportation.
“Simply put, the more efficient our logistics is, the more competitive our products will be. This is only one of the simplest examples of how logistics affect the country’s economy,” he concluded.
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