The fresh investment from MDI will be used to fuel Roambee’s entry into Indonesia and Southeast Asia’s other booming logistics markets.
“The opportunity in Indonesia is huge,” says Roambee CEO Sanjay Sharma. “It’s one of the largest in the world, with almost 24 per cent of the country’s GDP spent on logistics. With MDI’s investment, Roambee gains a significant advantage in quickly assuming a leadership position in driving the enterprise digital transformation of Indonesia across supply chain shipment and asset monitoring visibility.”
Founded in 2013, Roambee claims to be the first logistics and asset management company that uses the Internet of Things (IoT) to deliver on-demand real-time visibility, tracking, and condition monitoring for goods and assets in-transit and in-field.
Its solutions include a tracking device with multiple sensors and software that provides analytics and real-time information about shipments in transit.
The investment from MDI comes just over a year after the company announced the closing of a $4.1-million round of funding from Deutsche Telekom and undisclosed Silicon Valley investors. Prior to that, it had raised $2.5 million from undisclosed investors in May 2016.
MDI’s decision to back Roambee came after reviewing over 7,000 companies in the IoT smart logistics space, said the VC firm, an arm of state-owned telco firm Telkom Indonesia.
“Roambee’s end-to-end solution is best suited to meet the challenges of Indonesia’s varied supply chain ecosystem, which we will see realized when implemented as part of Telkom Group’s enterprise services later this year,” said MDI Ventures CEO Nicko Widjaja.
In March, MDI, which manages a $150-million fund with a specific focus on verticals that align with Telkom Indonesia’s strategy, had announced an investment in Australian cloud communication platform Whispir.
Roambee’s expansion to Indonesia comes at a time when the logistics industry in the country, along with other countries in the region, is set to see a rapid rise following robust China-ASEAN trade growth in a market worth $472 billion as of 2015.
Reports have suggested that Indonesia and Thailand are likely to see robust development in their logistics sectors in the 2017-2020 period, as manufacturing moves out of China and into these countries.