Indonesia-based Paxel, an app-based logistics startup that promises same-day delivery service, is said to have raised has raised as much as $10 million led by its co-founder Johari Zein, according to sources familiar with the development.
That is not all. The startup is also in talks with venture capital firms such as East Ventures, Agaeti and SMDV to garner funding. Negotiations are understood to be at an advanced stage.
Paxel has received its seed funding from angel investors but has not secured a VC round yet.
The startup, founded by Bryant Christanto (CEO), Zaldy Ilham Masita (co-founder), and Johari Zein (co-founder) in early 2017, currently operates in Jabodetabek, Bandung, Java, and Denpasar regions.
Zein is one of the founders of the company and an early shareholder of Indonesia’s biggest shipping company JNE Express. In addition to serving as JNE Express’s President Commissioner, Johari has also been an active investor in the technology space over the past few years. Johari is leading four other new startups: entertainment firm Gorilla, music products and services startup Kawan, food distributor Omiyago and design consultancy Alien.
Paxel, which promises money back in case it fails to deliver the packages, also has a partnership with Indonesian e-commerce unicorn Bukalapak. Paxel currently has over 200 motorbikes and five cars for delivery. Going forward, it is targeting to expand its operations in over five cities, said sources.
DealStreetAsia’s queries to all the companies involved failed to elicit a response at the time of publishing this article. When contacted, Johari Zein replied saying the company does not want to comment on ‘market speculation’.
Startups operating in the logistics sector in Indonesia are increasingly evincing investor interest on the back of strong e-commerce growth.
While on-demand (SaaS) warehouse service provider Waresix recently made headlines for securing a $14.5 million Series A funding, Triplogic, an on-demand logistics service also raised capital.
And these are not the only ones. There are other startups too such as Deliveree, Trukita and Etobee, too, which have garnered investor money.
Logistics in Indonesia plays an important role in the country’s economic growth.
Over the last few years, a slew of startups have mushroomed in the sector to ride on its growth. While existing e-commerce players such as Gojek, Blibli and Mataharimall have established separate e-logistics platforms, several startups launched their services from scratch.
These include names such as Expedito Global (founded in 2016), Iruna eLogistics (set up in 2017), among others. While Expedito provides overseas shipping services at low prices, the latter offers a slew of services in terms of warehousing, shipping goods to consumers, and integration of marketplaces with online stores.
Experts tracking the sector say the sector is poised to witness rapid growth in the years to come. After all, the more efficient the country’s logistics are, the more competitive its products are slated to become.