Indonesian last-mile delivery startup SiCepat Ekspres has closed a Series B funding round of $170 million backed by a host of investors including Falcon House Partners, Pavilion Capital and MDI Ventures.
The deal confirms DealStreetAsia’s report published in January.
Other new investors in the round include German development financial institution DEG, Trihill Capital and Daiwa Securities, while existing backers Kejora Capital and Indies Capital also topped up, Sicepat said in a release.
“This financing round is designed to further fortify SiCepat’s position as the leading end-to-end logistics service provider in the Indonesian market and potentially to explore expansion to other markets in Southeast Asia,” said The Kim Hai, founder and CEO of Sicepat’s parent company Onstar Express.
At $170 million, SiCepat claims its new round counts as the largest Series B to be raised in Southeast Asia. While the company did not disclose its current valuation, SiCepat described itself as a soonicorn, suggesting that it is inching closer to the $1 billion valuation mark, and becoming a so-called unicorn.
Its growth is attributed to the capital it has received from Kejora Ventures since its seed round. The Indonesian VC firm injected a $3.5 million seed investment into SiCepat in 2017, before topping up, through its Kejora-InterVest Star Growth Fund in the company’s $50 million Series A round in 2019. The round was participated by Barito Teknologi, the investment arm of Indonesia’s petrochemicals major Barito Pacific.
“Indonesian e-commerce market stood at $32 billion in 2020 with a projected 5-year CAGR of 21% to become $82 billion industry by 2025. We believe that SiCepat is ideally positioned to serve customers from e-commerce giants to uprising social commerce players which contribute an estimated 25% to the total digital commerce economy,” said Sebastian Togelang, Managing Partner of Kejora Capital, who also acts as a director at SiCepat.
SiCepat was bootstrapped in 2014 as a last-mile delivery services company for social commerce merchants in Indonesia. Since then, it has expanded its last-mile delivery to cater to some of the largest e-commerce platforms in Indonesia.
Recently, the company has undergone consolidation of its key logistics assets across warehousing, fulfillment and e-distribution to provide a comprehensive suite of logistics services to the market.
According to DealStreetAsia sources, Onstar Express has built a separate warehousing company called Haistar, which was founded and led by former SiCepat chief commercial officer Donny Maya Wardhana. While it runs its own business, the company also enables SiCepat to offer end-to-end logistic services to its customers.
SiCepat had declined to comment on its affiliation with Haistar, while Haistar did not respond to DealStreetAsia’s query.
At the start of this year, the company also made a foray into the business of food delivery after acquiring a 51% stake in DigiResto, a food ordering platform developed by Digital Maxima Kharisma (DMK), a subsidiary of M Cash Integrasi (MCAS), a listed digital distribution company.
Its array of services, which currently includes last-mile, warehousing and fulfillment, commerce-enabling services, online distribution and middle-mile logistics, pits it against numerous players in the Indonesian logistic space. It battles with J&T Express and JNE in the last mile segment and sees competition from Waresix and Kargo Technologies in the middle-mile and warehousing space.
SiCepat claims to be profitable and fulfills more than 1.4 million packages per day in 2020. The company says it expects to continue to build upon its robust infrastructure and enhanced customer experience to serve more entrepreneurs and tap into neighboring countries.