Prior to this investment, Kone Si received a pre-seed funding from local accelerator Phandeeyar in 2017.
The startup said it has connected more than 100 business shippers and 2,000 truckers to its platform, and has enjoyed an average month over month sales growth of 30 per cent.
Proceeds from the latest financing will be used to boost utilisation of its technology platform, talent acquisition and expansion to other commercial cities in Myanmar.
Local businesses are facing the challenges of outsourcing transportation to third parties because of lack of standardised procedures and opaque pricing among truckers, according to Kone Si.
Difficulties for small fleet owners and individual truckers to get regular jobs also persists due to fluctuating transport pricing controlled by large trucking groups.
“We believe that understanding the power paradigm between customers and truck suppliers is the key to success in the business. Knowing the freight flow throughout the year in the country is critical to help our partner truckers get the return loads and operating efficiencies,” said Kone Si CEO Zar Phyu Tint Lwin.
The frontier market of Myanmar is witnessing a high GDP growth of 6-7 per cent per annum, resulting in rising demand for logistics. Kone Si is not the only player in the freight marketplace. Local rival Kargo Myanmar has also bagged $800,000 seed funding from Cocoon Capital in May 2019.
Nest Tech, which is based in Ho Chi Minh City and invests in Southeast Asian startups, has backed several businesses in Myanmar including Flexible Pass, Mote Poh and Yangon Broom. Meanwhile, YCP plans to invest in up to 30 Burmese startups within the next couple of years.