Jakarta-headquartered firm Logisly secured US$6 million in a series A funding, led by Monk’s Hill Ventures.
This business-to-business (B2B) platform is responsible for connecting shippers with trucking providers from corporate carriers. The funding enables the company to strengthen its operations and network with Indonesian transporters.
With powerful and highly-capable algorithm, shippers can get real-time tracking and digital proof of delivery. Now that online shopping is prominent, due to the global pandemic, more people rely to deliveries to get their goods.
Since Logisly’s rise in the market in 2019, it has raised a total of $1 million. This recent funding brings its total money raised by $7 million, to grow its capabilities and expand market reach.
The company also plans to grow its Indonesia team, expand sales and vendor acquisition teams within the country. Logisly also plans to serve as a single point of contract for orders, payment, shipping, and tech support for the shippers and truck providers.
While the Indonesian government is also making efforts in bringing down the country’s high logistics costs, the industry still faces numerous challenges. Finance Minister Sri Mulyani Indrawati revealed that the logistic costs stand at 23.5 percent of the country’s GDP.
Indonesia’s ranking on World Bank’s Logistics Performance Index (LPI) rose 17 places to 46th, out of 160 countries surveyed. It remains below the neighboring middle-income countries like Malaysia, Thailand, and Vietnam.
Co-founder Roolin Njotosetiadi said Indonesian logistics industry is ‘largely fragmented’, and Logisly is trying to digitize the industry. Doing so can lessen the challenges in high logistics costs, manual processing, and unreliable transporters.
By increasing the efficiency in monitoring, and enhancing logistics technology, Indonesia can provide better service for the people, and increase transparency and automation. Logisly aims to use technology in making this happen, and create good changes in the logistics industry.
The company works with more than 40,000 trucks and caters to over 300 corporate shippers. It tandems with all kinds of verticals, including chemicals, construction, and even e-commerce or retail.
Coordinating directly with brands, Logisly was able to increase and even double its profit. Market analysts at Ken Research provide sales forecast of up to $300 billion in 2024, a huge potential when it comes to local logistics company.
“Logisly has made great strides in solving the large inefficiencies in the Indonesian B2B logistics industry and driving its long overdue digitalization. Only a year and a half into their journey, the team has grown and managed astutely,” said Monk’s Hill Ventures partner Justin Nguyen.
The company raised its seed round last year with an undisclosed amount, led by Japan’s Genesia Ventures and Indonesia’s Convergence Ventures.