Indonesia: Kargo gets funding from East Ventures, ANGIN angel investor

photo by Kargo.co.id

Indonesia’s Kargo.co.id announced today that it has received an undisclosed amount of seed funding round from local venture capital firm East Ventures.

Angel investor and Cardig Aero Services president Diono Nurjadin also participated in the round. Nurjadin is a member of the Angel Investment Network Indonesia (ANGIN).

Kargo is an on-demand startup that seeks to democratize Indonesia’s inter-city logistics landscape by feeding deliveries to idle drivers in the area with a truck and time on their hands. It identifies inefficient transportation routes that can in turn be optimized.

By doing this, Kargo helps suppliers maximize their capacity. The company sees the process through from end to end, also helping with insurance and vendor payments.

CEO Yodi Aditya said, his firm’s main goal for the future is to construct “chainable logistics operations”, by connecting all logistics companies in the archipelago in one online ecosystem.

“Our online dashboard makes delivery activities simple and easy – including booking, shipment tracking, insurance, payment and vendor management. We enable business to reduce logistics cost and increase productivity,” Aditya said in a statement.

Logistics have been one of Indonesia’s main hurdles when it comes to business and growth.

Currently, the cost of logistics in the archipelago stands  at a whopping 24 per cent of the country’s overall GDP, about 2.5 times higher than logistics cost in Singapore. A World Bank report said that bringing the figure down to 16 per cent — like in Thailand — would mean enormous savings of some $80 billion a year.

President Joko ‘Jokowi’ Widodo realizes this and has vowed to make the case in his top priority. He has called for local companies to find innovative ways to lower the average dwell time of shipments in the nation’s ports.

“Dwell time is inevitable for logistics company and bring up the cost. Kargo technology help the company reduce cost by maximize truck utilization and increase their services quality. Efficiency will bring domino effect in this logistics chain,” said Aditya.

Indonesia’s logistics industry is expected to move forward in line with the country’s fast growth. Boston Consulting Group (BCG) revealed that the sector has been recording strong double digit growth in the past few years, and will continue to do so on the back of increased domestic consumption, higher trade, lower external financing costs, and more infrastructure development.

The domestic market size for logistics as a whole in Indonesia is estimated at S$163.4 billion and still growing.

E-payments, logistics, and infrastructure are often cited as the three main spaces that need to be improved upon before many modern business models in Indonesia (like e-commerce, for example) can see significant growth – similar to markets like the United States, China, and India.

Furthermore, BCG says that the ASEAN Economic Community could soon pose interesting problems and opportunities for Indonesian businesses. Much work still needs to be done to improve international connectivity and the country’s export competitiveness. For this reason, it is important for Indonesia’s logistics sector to start adopting a more integrated approach that ensures efficiencies across the entire supply chain.

“AEC will significantly increases the intensity of goods and commodity’s flow in the region. It will also impose a great challenge because for a very long time, the country’s logistics sector has been inefficient with no one disrupting the market,” said Wilson Cuaca, managing partner of East Ventures.

“But we believe the technology Kargo develops will empower Indonesia’s competitiveness for domestic and international trade,” he added.

Also Read:

Indonesia’s Angin funds three new startups, adds more angels

Indonesia’s iGrow gets seed funding from East Ventures, 500 Startups

Indonesian food recipe startup ResepKoki looks to raise initial funding

Exclusive: Indonesia P2P lending startup Investree to raise Series A from Kejora

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.