Philippines-based logistics platform services firm Inteluck has secured several million dollars in its Series A+ funding round from a group of venture capital firms led by FutureCap, an early-stage Chinese VC, the company said in a statement.
Founded in 2014, Inteluck provides trucking, distribution, freight forwarding, contract logistics and customized supply chain services to shippers.
The funding comes two years after the firm raised at least $1 million in its seed round led by Tokyo-based technology-focused venture capital firm Infinity Ventures.
Inteluck founder and CEO Kevin Zhang told DEALSTREETASIA that the amount raised in the latest round is in several million dollars, not $1 million as earlier reported. Zhang said Inteluck plans to consolidate more resources and further strengthen its network in the Philippines using the fresh funds.
“For now, Inteluck is setting out for a new round of fundraising and looking to further accelerate its dominance in the Philippines and prepare to expand its service to the rest of the Southeast Asian markets,” Zhang said.
Inteluck’s network includes more than 1,000 small vehicle logistics service providers and 12,000 certified trucks. The firm said it currently services 100 medium and large local and international enterprises who ship products in the Philippines.
The funding round comes as the Philippine freight and logistics market is expected to reach $60.22 billion in value by 2023, according to a report by Mordor Intelligence. Thailand’s Deliveree and Hong Kong’s Lalamove are among the overseas logistics firms that have already expanded to the country.
In Southeast Asia, full truckload shipping has a market size of $100 billion, where the top three markets are Indonesia, Thailand, and the Philippines, according to Inteluck. In the Philippines, logistics accounted for 20 per cent of the country’s $332.45-billion GDP in 2018.
“In spite of the fact that full truckload shipping is the main delivery option for over 85 per cent of the total goods, full truckload truck owners are small and traditional. They do not have an effective operating system to track deliveries, manage truck drivers, and monitor fuel consumption,” the firm said.
The lead investor, FutureCap, also known as Mingshi Capital, closed its third USD-denominated fund at $100 million in October last year. This brought its total capital under management to 2.5 billion yuan ($360 million). The VC focuses on artificial intelligence, big data, smart travel, high-end manufacturing, Internet of Things, aerospace, medical devices and IT.