Indonesian logistics startups Ritase and Waresix, which are focused on middle mile-delivery or transport of goods from warehouses to retailers, are in advanced talks to raise funding, said sources privy to their fundraising plans.
Waresix is understood to be in the process of finalising a $50-million round and “the transaction is expected to close soon,” said one of the persons mentioned above. While its existing investors such as EV Growth and Jungle Ventures are expected to participate in the round, there is one new player in the fray as well, the person added on condition of anonymity.
Meanwhile, the trucking services platform Ritase is said to be in the midst of raising over $15 million to expand its operation. Last year, the company made headlines for garnering around $13 million.
These negotiations have surfaced at a time when the sector is witnessing increased investor interest. Earlier this month, DealStreetAsia had reported that SiCepat Ekspres is eyeing a corpus of over $100 million.
While Waresix and its proposed investors did not respond to our query, Ritase declined to comment on the development. “Unfortunately, we can’t make any comment at this moment until all settle,” its spokesperson said.
Waresix’s platform connects small and fragmented trucking and transport companies with corporations by offering solutions from order matching to planning, routing and scheduling. It last raised around $11 million in its Series A round in January 2020 and its total funding stands at over $27 million to date.
Apart from EV Growth and Jungle Ventures, Waresix’s other backers include East Ventures and SMDV.
Ritase, on the other hand, is supported by investors such as Insignia Ventures, Golden Gate Ventures, Skystar Capital and Mitsibushi.
According to Donald Wihardja, CEO at MDI Ventures, one of the biggest factors that work for middle-mile delivery is the large market that the archipelago offers. Besides, the sector is a proven market fit in other countries such as China and India.
“Also, what works to its advantage is that there are “quite a few well-backed players,” said Wihardja.
“This is a sector rearing to go. However, it is also full of brokers, supplies with a dubious track record,” he added.
Of late, the logistics sector has witnessed significant traction in the archipelago. Singapore-headquartered Ninja Van, which has a significant presence in Indonesia, recently raised $279-million in a fresh round of funding after the pandemic led to a surge in e-commerce demand. Other companies that attracted funding include Kargo Technologies, Shipper and Logisly, among others.