SiCepat, an end-to-end logistics startup in Indonesia, announced today that it has initiated a Series B financing round valued at $ 170 million. The company was founded in 2014 to provide last-mile delivery for small merchants and has since expanded to large e-commerce platforms as well. Services now also include warehousing and fulfillment, middle-mile logistics and online sales.
SiCepat’s Series B investors include Falcon House Partners; Kejora Capital; DEG; MDI Ventures, investment arm of Telkom Indonesia; Indies Capital; Temasek Holdings subsidiary Pavilion Capital; Tri Hill; and Daiwa Securities. The company’s last funding announcement was a $ 50 million Series A in April 2019.
In a press release, Kim Hai, founder and managing director of SiCepat’s parent company, Onstar Express, said the funds will be used to “strengthen SiCepat’s position as the leading end-to-end logistics service provider in the Indonesian market and potentially further strengthen its expansion to investigate other markets in Southeast Asia. “SiCepat claims to be already profitable and to be able to fulfill more than 1.4 million parcels per day in 2020.
The logistics industry in Indonesia is highly fragmented, which means higher costs for companies. At the same time, demand for deliveries is increasing thanks to growing e-commerce, especially during the COVID-19 pandemic.
SiCepat is one of several Indonesian startups that recently raised funds to make the supply chain and logistics infrastructure more efficient. Earlier this week, for example, SaaS provider Advotics announced a round of $ 2.75 million in the supply chain. Other notable startups in this space include Kargo, which was founded by a former Uber Asia manager, and Waresix.
SiCepat is particularly focused on e-commerce and social commerce, or people who sell goods through their social networks. Kejora Capital managing partner Sebastian Togelang said the Indonesian e-commerce market is expected to grow at an average annual growth rate of 21% for five years, reaching $ 82 billion by 2025.
“We believe SiCepat is ideally positioned to serve customers from e-commerce giants to emerging social commerce players who are estimated to contribute 25% to the total digital retail economy,” he added.