Indonesian logistics startup Shipper is said to be in advanced stages of talks with private equity firms including Warburg Pincus and Asia Partners to finalise a $50-million funding round, according to three people aware of the deal.
DealStreetAsia has learnt that the Series B round will likely close in the first quarter of 2021.
The negotiations for the latest deal comes six months after Shipper announced the closing of the Series A round in June this year.
While the deal value was undisclosed, we had reported that Shipper raised up to $20 million in its Series A round from South Africa-headquartered global internet group Naspers and existing investors to finance its expansion and hiring plans.
The Series A round was joined by return backers Lightspeed Venture Partners, Insignia Ventures Partners, and AC Ventures.
Asia Partners and Naspers declined to comment on the fresh round while Shippers and Warburg Pincus have not replied to a DealStreetAsia query on the same.
Shipper first raised its $5-million seed funding round from Y Combinator, Lightspeed Venture Partners, Floodgate, Insignia Ventures Partners, and AC Ventures. To date, Shipper has raised over $30 million in its funding rounds.
The firm enables its customers to discover the best shipping price from its network of partner logistics shippers including JNE, Sicepat, Ninja Xpress, and aCommerce. It also provides an API that enterprises can plug into their apps or websites to add shipping and tracking services.
According to industry observers, models like Shipper’s might be attracting investor interest as they operate across the first, middle and last-mile logistics chain, largely following an asset-light model.
However, logistics companies – operating in the first to the last mile space – are not without their challenges. For instance, having their own warehouses can turn the business model asset-heavy due to the real estate component, an investor in this space added.
The potential deal comes at a time when the Indonesian logistics industry has seen a spate of big transactions bucking the overall gloomy investment outlook in the wake of the COVID-19 pandemic that has thrown deal activity out of gear.
In some of the significant deals in the sector, B2B logistics platform Waresix – Shipper’s rival – snagged $100 million in its Series B round from SoftBank Ventures Asia, Redbadge Pacific, Pavilion Capital, Jungle Ventures, EV Growth, and EMTEK group in September.
DealStreetAsia reported about last-mile delivery startup SiCepat Ekspres – backed by Tokopedia – being on track to close $100 million by the year-end.
In May 2020, Singapore-headquartered Ninja Van secured $279 million in its late-stage round from France’s GeoPost SA and ride-hailing giant Grab. Even Jakarta-based freight logistics marketplace Kargo Technologies raised $31 million in a Series A funding round led by Silicon Valley-based Tenaya Capital.