Indonesian logistic startup Waresix has raised USD 14.5 million in a Series A round led by East Ventures’ EV Growth, with participation from SMDV and Jungle Ventures.
This marks the third investment in Waresix by East Ventures, which also participated in the company’s seed round in February 2018 and USD 1.6 million pre-Series A round in October that year, according to a joint statement shared by Waresix and EV Growth.
Founded in 2018 by Andree Susanto and Edwin, the young startup connects shippers and businesses with available warehouses and trucks across Indonesia, providing better transparency, quality of service, and improved income for asset owners. Waresix currently has more than 20,000 trucks and 200 warehouse operators in its network across the country.
The logistics industry in Indonesia promises good potential but comes with big challenges. The country’s logistics market is expected to reach USD 240 billion by 2021. However, due to its archipelagic makeup, logistics costs run high in Indonesia, accounting for nearly a quarter of the country’s USD 1 trillion gross domestic product, according to Waresix.
In order to address this challenge, Waresix simplifies the supply chain by improving utilization and removing middlemen. Its services include land and marine transportation, general cargo handling, and cold storage to cater inter-island freight movement across Indonesia.
In a press statement, Waresix co-founder and CEO Andree Susanto said that the company will use its new funding to expand land transportation services and strengthen its warehousing network in second-tier cities.
“Indonesia is experiencing an infrastructure growth spurt at the moment thanks to the government’s policies, and this spurt will fuel Waresix’s widening coverage,” said Susanto.
As e-commerce and online shopping take off in Indonesia, the logistics sector has become an essential component that drives customer satisfaction. It is no surprise that many startups are making their way into this field. Some of them have shown promising growth.
Earlier this week, Indonesian logistics startup Ritase raised USD 8.5 million in series A funding. The company said that it facilitates tens of thousands of shipments per month via its network of 500 small and medium-sized transportation companies. Another player to watch is Kargo Technologies, which is backed by Sequoia Capital India. The startup raised USD 7.6 million seed round in March 2019 to expand its team aggressively while improving its infrastructure and technology.