In the latest deal in Indonesia’s trucking space, e-forwarding startup Logisly has raised an undisclosed seed funding round led by Singapore-based SeedPlus, Indonesia-based Convergence Ventures and Tokyo-based Genesia Ventures.
With the fresh capital, Logisly is set to pursue its goal of easing the high cost of logistics in Indonesia, by increasing utilization of trucks and providing more certainty in managing supply chains through a wide network of reliable transport, order transparency and automation.
Co-founded by former Kudo head of products Roolin Njotosetiadi, Logisly works by aggregating supply and demand for trucking through a managed platform that provides shippers with reliable, verified trucks powered by real-time tracking and digital PODs, while providing trucking companies with a facility to utilize idle or vacant trucks and receive quick payment.
The startup works with verified transport companies with fleets ranging from colt diesel, wingboxes, trailers, and even specialized trucks such as flatbeds and reefers.
“To our shippers, we are equivalent to a large transporter, with all orders aggregated, allocated and managed by us. To the transporters, we act as a large customer, with control, customer service, payments and even dispute settlement centralized in one place. This way, we guarantee service quality and meet SLAs on both sides,” said Njotosetiad.
Within three months of launching, the company claims to have completed thousands of orders, facilitating the transportation of goods from a range of industries, from FMCG, chemicals, containers, construction to eCommerce purchases. Within these three months, Logisly has also added more than 5,000 trucks in their network.
The investment raised by Logisly makes it the latest VC-backed company looking to seize the huge opportunity in what many see as a challenging market for logistics.
Based on Mordor Intelligence’s Indonesia Freight and Logistics Market – Growth, Trends, And Forecast (2019 – 2024), the logistics market is expected to grow at a Compound Annual Growth Rate of 13 to 15 per cent from 2018 to 2024. According to Mordor Intelligence, the cost of logistics ranges from 25 to 30 per cent of Indonesia’s Gross Domestic Product, as compared to below five per cent in developed economies.
Among the existing players in the market are Ritase, which recently raised a Series A funding round of $8.5 million led by Golden Gate Ventures to propel its growth and expand into new markets. Another relatively new player is Kargo Technologies, a trucking logistics startup co-founded by former Uber Indonesia country manager Tiger Fang which closed a $7.6-million seed funding round led by Sequoia Capital India and joined by Uber co-founder and former CEO Travis Kalanick’s 10100 Fund.