Indonesian logistics tech platform Shipper on Wednesday announced the acquisition of warehousing solutions company Pakde and local delivery startup Porter. Financial details of the acquisitions were not disclosed.
Shipper’s acquisition of Pakde, which is backed by VC firm TNKapital, was first reported by DealStreetAsia in May.
The deal, Shipper said, will enable the company to create holistic solutions for Indonesian consumers with warehousing and fulfilment services, on top of its existing shipping aggregator solutions. Porter’s delivery service, meanwhile, is expected to strengthen Shipper’s network in order to get closer to consumers.
“Shipper has a vision to advance the world of logistics in Indonesia by always providing the best service that prioritises consumer convenience, in meeting all the logistics needs of the Indonesian people,” said Shipper co-founder and COO Budi Handoko.
Its new warehousing capabilities put Shipper, which is a portfolio company of Lightspeed, in competition with other VC-backed startups like EV Growth-backed Waresix, as well as Haistar, an affiliate company of Kejora Ventures-backed SiCepat.
A Y-Combinator graduate, Shipper enables customers to discover the best shipping price from its network of partner logistics shippers including JNE, Sicepat, Ninja Xpress, and aCommerce. It also provides an API that enterprises can plug into their apps or websites to add shipping and tracking services.
It aims to solve three major problems in Indonesia’s logistics aspects: a confusing plethora of different warehousing and shipping options, lack of price transparency, and below-average trackability.
In May, Shipper said it is working with more than 100 express couriers for hassle-free shipping and fulfilment on top of competitive shipping costs and transparent services.
The acquisition announcement comes just over four months after Shipper raised its Series A funding round, which was led by global internet group Prosus Ventures, formerly Naspers Ventures, and joined by existing investors including Lightspeed, Floodgate, Y Combinator, Insignia Ventures, and AC Ventures.
While the company did not disclose the size of the investment, sources have said Shipper managed to raise up to $20 million in the funding round.
Indonesia’s logistics market is projected to hit $240 billion by 2021, roughly the same size as India’s $215 billion. Despite the size of the market, logistics in Indonesia is extremely inefficient. In tier 2 and tier 3 cities, shipping costs can often add up to 40 per cent of e-commerce basket sizes, serving as a major barrier to mass e-commerce adoption in the country.