Indonesian logistics tech platform Shipper said Thursday that it has raised Series A funding led by global internet group Prosus Ventures, formerly known as Naspers Ventures, to expand its business in Indonesia.
Existing investors including Lightspeed, Floodgate, Y Combinator, Insignia Ventures, and AC Ventures participated in the round, according to a statement.
This confirmed DealStreetAsia’s report last month. Quoting sources, we had reported that Shipper is said to have raised up to $20 million in its Series A round from South Africa-headquartered global internet group Naspers and existing investors.
Shipper said it aims to solve three major problems in Indonesia’s logistics aspects, including a confusing plethora of different warehousing and shipping options, lack of price transparency, and below average track-ability.
“With this investment Shipper will continue to grow, and our priority now is to recruit exceptional talent to join us in building strong data and tech capabilities to structure the unstructured world of fulfilment and shipping,” said Shipper co-founder and COO Budi Handoko.
The new investment round will enable Shipper to continue expanding its solutions and address the pain points of businesses finding the best shipping partner; without the hassle of evaluating multiple factors such as cost comparison, orders and tracking, insurance and more.
“Shipper addresses logistics needs with a favourable tech-enabled, asset-light, variable-capacity model. This model has demonstrated strong early adoption since its launch, and will only continue to improve with a strong, seasoned team,” added Budi.
Currently, Shipper is working with more than 100 express couriers to deliver their promise to customers of hassle-free shipping and fulfilment on top of competitive shipping costs and transparent services, so online established or personal e-Commerce can have more time to focus on the most important parts of their businesses.
Shipper last raised a $5-million seed funding round from Y Combinator, Lightspeed Venture Partners, Floodgate, Insignia Ventures Partners, and Convergence Ventures.
Shipper enables its 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.
Indonesia’s logistics market is projected to hit $240 billion by 2021, roughly the same size as India’s $215 billion logistics market. 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.
Prosus is a global consumer internet group and one of the largest technology investors in the world. The group focused on building businesses in the online classifieds, payments and fintech, and food delivery sectors in markets including India, Russia and Brazil. Through its ventures team investments, in areas including edtech and health, Prosus actively seeks new opportunities to partner with entrepreneurs who are using technology to address big societal needs.
Prosus has a primary listing on Euronext Amsterdam and a secondary listing on the Johannesburg Stock Exchange, and is majority owned by Naspers.