Indonesian logistics firm SiCepat on track to close $100m Series B by year-end

Indonesian last-mile delivery startup SiCepat Ekspres will close its $100 million Series B round in December 2020, a senior executive said. DealStreetAsia had reported plans of the fundraising in June.

Singapore-based Indies Capital invested in the latest funding round along with existing investors, the firm’s chief marketing officer (CMO) Wiwin Dewi Herawati confirmed. She was speaking exclusively to DealStreetAsia.

The proceeds from the funding will be used to strengthen the firm’s technology and to accelerate the growth of e-commerce — the key driver of its business.

“We have enough branches across Indonesia at the moment. Our focus is to reinforce our technology systems. We see the e-commerce business is growing fast, and we need to align the technology. Hence, we want to duplicate the Chinese model where all processes — the sorting of goods, tracking of receipts etc. — use technology,” Herawati said.

SiCepat Ekspres, which is backed by Kejora Ventures and Barito Teknologi, says it has a 12 per cent market share in Indonesia and expects an 18 per cent market share in 2021 by implementing advanced technologies.

The company’s business has gained momentum this year, as the pandemic has accelerated e-commerce and encouraged the growth of e-commerce enablers such as SiCepat.

“Until Q3 2020, our business grew 147 per cent year-on-year; and we achieved a positive EBITDA in April, earlier than our prior target of the fourth quarter this year,” Herawati said.

This year, the company delivered about 800,000 packages per day on average. Yet, the branch utilisation is only around 50-55 per cent of the total capacity, Herawati said. By implementing advanced technologies, SiCepat Ekspres will target to deliver 1.8 million packages per day in 2021, and achieve a utilisation rate of around 80 per cent for each branch. 

SiCepat Ekspres’s biggest revenue drivers are the e-commerce firms Tokopedia, backed by SoftBank, SEA group’s Shopee, and EMTEK group-backed Bukalapak. Tokopedia is one of the firm’s investors, sealing the investment in a Series A round in 2019, DealStreetAsia reported.

IPO roadmap

SiCepat Express — established in 2014 by Rudy Swigo and The Kim Hai — is also weighing an initial public offering (IPO) for the second semester of 2021 or early 2022. Herawati explained that the IPO plan has already been in the company’s pipeline since last year. “It is on the table and will be considered depending on the market situation.”

She said the firm wants to have an IPO to upgrade the company’s valuation and open the possibility of business expansion outside Indonesia. “We see potential business outside Indonesia, and we are looking to expand into more countries in the region, including The Philippines and Bangkok [in Thailand],” she said.

Herawati declined to divulge details of the planned IPO size.

SiCepat Ekspres — a rival to Indonesia’s biggest logistics company JNE, and also J&T Express — is looking to expand its services by partnering with local mini-mart chains, and mom-and-pop stores. It recently partnered with Alfamart, one of Indonesia’s largest mini-mart chains, for pick-up and drop at more than 900 Alfamart merchant locations. 

“We see many potential partnerships with other merchants for our business expansion and growth in the future,” she added.

Herawati believes the firm can surpass a Rp3.6 trillion ($ 254.17 million) in full-year target revenue this year, compared with Rp1.8 trillion ($127 million) in 2019. Meanwhile, the firm has set a revenue target of Rp9 trillion ($635.42 million) for 2021.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.