Indonesian on-demand warehousing company Waresix announced today that it has raised an undisclosed amount of seed funding from East Ventures.
According to an official statement, the fund raised will be used to accelerate Waresix’s mission to develop its warehouse network, infrastructure and cloud-based platform.
Waresix, a platform that matches unused warehouse space with users in need of such facility, looks to capitalize on the demand for flexible warehousing given the booming e-commerce market in the country.
“Distribution and logistics have always been a challenge in Indonesia due to its archipelago structure. Waresix provides a solution for dynamic warehousing strategy that allows our customers (retailer, distributor and manufacturer) to quickly adapt to variable demand,” says Waresix CEO Andree.
The startup, which already has operations in major cities including Jakarta, Surabaya, Makassar and Balikpapan, says it uses technology that utilizes algorithm to help users find the best warehouse to store their products in.
It also uses a cloud-based software that enables users to manage their reservations, access operation visibility such as inventory management and shipment, and manage contracts and billings across different warehouses.
“This solution will only work in the market that has significant digital commerce players, and we hope Waresix could capitalize Indonesia market quickly,” said East Ventures managing partner Willson Cuaca.
The investment in Waresix is the latest from East Ventures which has had a busy month. Earlier in February, the early-stage venture fund participated in a seed funding round for Indonesian retail tech startup Warung Pintar. This came only days after news of its involvement in the series A funding round for New Zealand-based exascale computing firm Nyriad.
With the growth of e-commerce in Indonesia amid the countries logistics challenges, a number of startups looking to provide solutions to the problem, have been backed by investors to seize the opportunity in the market.
Early in February Jakarta-based logistics solutions provider Etobee was said to have closed a post-Series A bridge round of $3.5 million, while Singapore-based Ninja Van managed to raise an $85 million Series C funding to consolidate its presence across its operating markets including Indonesia.
The growth of e-commerce transaction in Indonesia has been around 17 percent annually in the last 10 years. With the assumption of recording the same rate of growth, the total e-commerce transaction in 2018 is predicted to reach Rp 102 trillion ($ 7.14 billion).