With a vast and complex network comprising many stakeholders, diverse processes and a big pile of data, the logistics tech sector in Southeast Asia has a sea of potential improvements to exploit. The key to innovation lies in technology, and therefore logistics tech startups are fastening their seat belts in pole position.
Research and Markets reported that in 2017, Southeast Asia’s third-party logistics market accounted for $36.4 billion USD with growth expectations at a CAGR of 5.5% for the 2018-2025 period, bringing it to $55.7 billion USD by 2025.
Innovative startups are entering the market bringing new ideas and trends like blockchain and real-time supply chain visibility to name a few. Investment companies know that high profits are lurking around the corner. However, for every opportunity in this tech race, there are at least as many obstacles. Customers, both individuals and enterprises, are demanding delivery of their products or services faster and cheaper than ever before.
This sector, like others, needs to be alert for a possible economic recession due to the pandemic. But, where others are taking a step back in fear of going under, these four companies aren’t suffering from cold feet and have taken the plunge.
In 2018, CEO & co-founder Tiger Fang entered Indonesia’s $250 billion USD logistics industry. As a former general manager at Uber Indonesia and Western China, he understands the startup ecosystem. With live status updates on shipments, better field performance with shipping data and loading, as well as faster unloading, Kargo is making strides in the market under Fang’s leadership. In April, they announced a $31 million USD Series A funding led by Silicon Valley’s Tenaya Capital.
The company donated $1 million USD to a Logistics Relief Fund in response to the COVID-19 virus. This fund will aid suppliers of medical protective equipment as well as suppliers of basic necessities such as drinking water and food.
Singapore-based logistics startup Moovaz has been granted exclusive membership into the International Association of Movers (IAM). They earned the trust of their clients by taking all of their relocation worries away by using a tech-based driven platform to connect with service partners from all around the world.
With an ambition to revolutionise the relocation sector, Moovaz raised $7 million USD from Quest Ventures and others such as SGInnovate, a Signaoprean Government deep-tech investor and local VC firm Supply Chain Angels, part of the YCH Group.
Ninja Van is the only last-mile courier claiming 100% service coverage in the region, through their Ninja Points, where you can collect, send or return your parcels hassle-free. CEO and co-founder Lai Chang Wen’s vision is for a Ninja to be within reach of all consumers in Southeast Asia. The company ships to Indonesia, Malaysia, Thailand, Philippines, Vietnam and Singapore.
The parcel delivery operator has secured $279 million USD in fresh funding in a Series D financing round as it works to scale its operations to keep up with the surge in eCommerce deliveries. Despite the COVID-19 pandemic, Facebook co-founder Eduardo Saverin’s B Capital Group, Europe’s GeoPost and Southeast Asian Unicorn, Grab, were amongst the investors to pump money into the six-year-old startup.
This Indonesian logistics tech player is dusting off the unused warehouses in Southeast Asia with the help of 2019 Series A funding to the tune of $14.5 million USD. Waresix achieved this phenomenal level of investment just eight months after securing $1.6 million USD in a previous Series A round. Investors such as EV Growth, a Southeast Asia growth fund set up by regional VC firm East Ventures, together with Indonesia’s SMDV and Jungle Ventures, a Singapore-based VC all came on board with funding.
The company connects shippers and businesses with available warehouses and trucks across Indonesia, providing better transparency, quality of service, and improved incomes for asset owners. Andree Susanto, Co-founder & CEO of Waresix, proclaims that their technology will seamlessly merge data analytics with the logistics infrastructure to give businesses complete control of their goods and maximise suppliers’ space utilisation.
These companies prove that the sector is booming and that the combination of creative minds with modern technologies brings endless possibilities. The complexity of the industry presents opportunities for rapid growth. We might have only witnessed the tip of the logistic iceberg, and hopefully, the best is yet to come.
While these startups are flourishing with their innovative ideas and investors are more than willing to take their chances, they still need to be alert and stay competitive, delivering faster, more efficiently and with more transparency than ever before. With new trends like autonomous vehicles and robotics, even these new startups have the challenge to keep apace in the ever-changing landscape of logistics technology.