The Indonesian logistic startup Kargo Technologies has received a strategic investment from Coca-Cola Amatil Indonesia’s corporate venture capital arm, Amatil X. The funding aims to digitize and optimize the soft drink company’s supply chain in Indonesia.
“Kargo Technologies is our first startup investment in Indonesia and we are excited to be partnering with them to improve our overall logistics capability,” said Coca-Cola Amatil Indonesia president director Kadir Gunduz in a joint statement. The startup has been fulfilling two key land transportation routes for Coca-Cola Amatil, and it’s expecting the number to increase over time as Kargo’s network expands.
The sum of money injected into the trucking marketplace startup was not disclosed.
The funding comes a year after Kargo raised USD 7.6 million in a seed funding round led by Sequoia India. Uber Co-Founder and ex-CEO Travis Kalanick’s 10100 Fund participated in that round.
For Kargo, the funding will help in building the digital infrastructure to bring efficiency to Indonesia’s logistics system. Road logistics amount to 16% of the country’s GDP, with approximately USD 40 billion spent on trucking each year. The CEO of Kargo Technologies, Tiger Fang, said that the industry is highly fragmented, with seven million trucks operating across 17,000 islands.
Founded in 2018, Kargo connects these truckers with commercial shippers through their platform, which can be accessed via website and mobile app. Shippers, transporters, and truckers can conduct transactions and track shipments in real-time.
“Kargo Technologies connects businesses and their shipping needs with trucking companies that have vehicles with cargo space available nearby,” he said. “Trucks are returning with fewer empty loads, allowing them to maximize revenue and better distribute costs.”
Kargo is the latest addition to Amatil X’s portfolio after Australia-based payment platform Doshii and Singapore-based F&B digital ordering platform Tabsquare. The venture arm focuses its investment on different sectors related to the F&B business, including distribution, consumer, environment, and future technologies.