Indonesia-based digital logistics provider Shipper has snagged $63 million in its Series B round led by DST Global Partners and Sequoia Capital India.
Existing investors Prosus, Floodgate, Lightspeed, Insignia Ventures, AC Ventures, and Y Combinator also joined the round.
The Series B financing comes less than a year after Shipper secured its Series A financing in June 2020. Previously, DealStreetAsia had reported that the firm was in talks with investors for its Series B round, and would likely close in the first quarter of 2021.
Shipper’s co-founder and COO Budi Handoko said the company will invest in technology development and expand its networks in Indonesia. Handoko added the funding will also be used to add to the team.
Launched in 2017, Shipper provides fulfillment and delivery services through its digitally managed network of fulfillment centers, delivery partners, and retail points, to e-commerce businesses.
Currently, Shipper has a presence in 30 cities and has 161 warehouses across Indonesia. Handoko said the firm will use the proceeds for the organic expansion of its operations.
The logistics industry has seen a surge in demand banking on e-commerce growth. Indonesia’s e-commerce GMV value is predicted to grow from $32 billion in 2020 to $83 billion in 2025, according to Google, Temasek, and Bain & Co in 2020.
Meanwhile, the logistics market revenue in Indonesia is valued at $240 billion in 2021, according to ResearchAndMarkets.com. Although there are more than 2,500 companies in Indonesia, the logistics cost is the highest in the archipelago compared to other countries in the region.
In October 2020, Shipper acquired the warehousing solutions company TNKapital-backed Pakde and local delivery startup Porter.