SiCepat, an Indonesian end-to-end logistics startup, revealed today that it has raised $170 million in Series B funding. The company, which was established in 2014 to provide last-mile delivery for small businesses, has since expanded to support major e-commerce sites as well. It also offers warehousing and delivery services, as well as middle-mile logistics and online distribution.
Falcon House Partners, Kejora Capital, DEG (German Development Finance Institution), MDI Ventures, Telkom Indonesia, Indies Capital, Temasek Holdings subsidiary Pavilion Capital, Tri Hill, and Daiwa Securities are among the investors in SiCepat’s Series B. The company’s most recent funding round was a $50 million Series A in April of this year.
The funding will be used to “further fortify SiCepat’s role as the leading end-to-end logistics service provider in the Indonesian market and potentially to pursue expansion to other markets in Southeast Asia,” according to Kim Hai, founder and CEO of SiCepat’s parent company Onstar Express. SiCepat says that it is now profitable and that in 2020 it will be able to fulfil more than 1.4 million packages a day.
Indonesia’s logistics sector is highly fragmented, resulting in higher costs for companies. At the same time, due to the growth of e-commerce, demand for deliveries is growing, especially during the COVID-19 pandemic.
SiCepat is one of a number of Indonesian startups that have recently raised funds to improve supply chain and logistics infrastructure. For example, supply chain SaaS provider Advotics announced a $2.75 million round earlier this week. Kargo, founded by a former Uber Asia executive, and Waresix are two other notable startups in the space.
SiCepat focuses on e-commerce and social commerce, which refers to people who sell products via social media networks. Sebastian Togelang, managing partner of Kejora Capital, said in a statement that the Indonesian e-commerce market is projected to expand at a five-year compounded annual growth rate of 21%, reaching $82 billion by 2025.
He continued, “We believe SiCepat is ideally placed to serve customers ranging from e-commerce behemoths to up-and-coming social commerce players, which account for an estimated 25% of the overall digital commerce economy.”