Other investors that also participated in the funding round for Giztix include AddVentures, the VC arm of Thailand-based conglomerate SCG and KK Fund. A new investor in CAC Capital was also onboarded.

The startup said in a statement, “The Covid-19 outbreak in 2020 and 2021 has encouraged businesses to increasingly turn to online services. As a result, the number of transport trips managed through the Giztix platform has increased by more than 420% or more than 500,000 transportation trips per year.”

According to the company, the funds raised will also be used to improve transportation services, expand its network and invest in its marketing and sales efforts.

Mr. Sittisak Wongsomnuek, chief executive officer and co-founder of GIZTIX said, “The road transport business in Thailand is worth more than $19 billion a year. There is an opportunity to grow even more. Thailand is also a strategic point for transportation and logistics in the region. But at the same time, most of the transportation business sector still lacks a digital system that will be an important part of connecting data and real-time communication.

“This is an important opportunity for GIZTIX to bring digital technology to help develop business in Thailand to be consistent. Go with the strategic plan for the development of transportation and logistics systems in Thailand in the future.”

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iSend Logistics offers cost-efficient, fast and reliable courier delivery services in Malaysia. Currently, it has warehouses in Klang Valley, Penang and Johor.
The pandemic has resulted in a growth in e-commerce and has fast-tracked digital adoption in many instances. With Malaysians buying more and more products and services online, it is also creating an increasing demand for logistical services.

Zamri Rahman, iSend Logistics General Manager told the media, “This strategic partnership between iSend and Ikobana will provide an opportunity for us to demonstrate our position in Malaysia’s first and last-mile delivery market. To keep up with the e-commerce boom in Malaysia, iSend will be focusing on partnerships, ramping up investment into technology and strengthening operations. We’ve identified gaps in consumer demand and will be offering exciting and newly improved products and services soon.”

“We plan in the next five years to expand across Malaysia by having at least 99 satellite stations with the support of seven hubs in each region. We currently have six distribution centres and 60 satellite stations in Malaysia,” he added.

Last month, it was reported that Malaysian airline AirAsia’s logistics arm Teleport signed an agreement to buy out DeliverEat, a Penang-based online food delivery platform, in a deal worth $9.8 million. Previously, AirAsia acquired Gojek’s operation in Thailand.

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The funding round for Parcel Perform was led by Palm Beach-based Cambridge Capital. Other investors such as SoftBank Ventures Asia and existing investors including Wavemaker Partners and Investible participated in it.

The Software as a service (SaaS) startup helps improve the experience of e-commerce merchants and their customers when engaging with carriers.

Arne Jeroschewski, CEO and co-founder at Parcel Perform said in a statement, “With e-commerce becoming the primary retail channel, the need for merchants to provide an excellent post-purchase experience has become business critical.

“Parcel Perform is uniquely positioned to capitalise on this opportunity with its enterprise-grade solutions and its globally standardised logistics data integrations. We are thrilled that our investors recognise our ability to build a sustainable and profitable business by serving some of the most sophisticated enterprise customers worldwide to help them boost their customer satisfaction online.”

Last month, it was reported that another Singapore-based logistics startup Ninja Van is planning to go public in the US as early as next year, according to its chief executive.

A spokesperson told the media that the startup’s focus at this point is on growing the business at a sustainable rate. This will put them in a good position to take advantage of the financial opportunities at a suitable time in the future.

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Co-founders Phil Opamuratawongse and Budi Handoko launched Shipper in 2017 which offers end-to-end logistics solutions ranging from warehousing, line haul, first mile, last mile, as well as cross border delivery. In the exclusive interview with International Finance, Shipper Chief Operating Officer (COO) Budi Handoko said that what Shipper brings to the table is efficiency. Indonesia’s logistics sector is still behind its neighboring countries, such as Malaysia, Thailand and Vietnam, in terms of the sector’s competitiveness and efficiency.

In a 2018 report, the World Bank, prior to the pandemic, mentioned that Indonesia’s Logistic Performance Index scored only 3.2 out of 6. Some of the major factors for such low rankings were lack of transportation infrastructure, bureaucracy and complicated regulations.

Several Southeast Asian e-commerce giants such as Tokopedia, Lazada, Shopee Indonesia and BukaLapak operate in the country, and the growing market means the demand for warehouses will increase along with volume. At the same time, the country’s internet penetration rate is also increasing. Given the opportunities in the Indonesian e-commerce market, many foreign investors are channeling their money into the e-commerce logistics sector. Investors understand there is money to be made and they have identified the right avenue.

Shipper, which has a presence in presence in 70 cities across Indonesia, around 2,500 logistics providers and around 50 fulfillment centers, raised $63 million in its Series B round which saw participation from investors such as DST Global partners and Sequoia Capital India. According to Budi Handoko, Shipper will use the funds to expand its team as well as upgrade its tech capabilities.

There is an opportunity for growth and development in the logistics sector in the country and one thing is very clear, as Budi Handoko pointed out, digital transformation is key for the logistics sector in Indonesia to evolve. While startups like Shipper are leading the charge, the logistics sector is set to mature but the overhaul will happen in the long run. There is a gap in the logistics market and it can be filled with digital transformation, which is key. In this exclusive interview with Budi Handoko discusses the Indonesian logistics market, challenges ahead as well as the outlook of the logistics sector in Indonesia.

IF: Indonesia is one of the fastest-growing e-commerce markets in the world. However, the logistics sector in Indonesia is very fragmented. Do you see the logistics sector in Indonesia changing in the next couple of years? Yes/No, why?
A: Indonesia’s e-commerce GMV value is predicted to grow from $32 billion to $83 billion in 2025, therefore the headwinds are driving the need for more efficient logistics. The logistics sector needs to adapt and capitalise these huge opportunities and this is exactly what we want to contribute; supporting Indonesia’s growing digital economy in the logistic sector for the long run. In building Shipper, we want to build an adaptive digital ecosystem by powering commerce and its supply chain through technology and data. We are offering an integrated end-to-end logistics solution with our digital logistics platform and working together with numerous partners to inject more efficiency in the traditional supply chain. This will hopefully structure the unstructured world of logistics eventually.

Q: What are the challenges that the Indonesian logistics sector needs to overcome to support its booming e-commerce industry?
A: The rapid growth of e-commerce has definitely created massive opportunities as well as challenges in the logistics world. E-commerce as an industry is actually, believe it or not, still in its very early stages in Indonesia if compared to other developed economies. I think the core issues at the top would be infrastructure connectivity, digital talents, and the fragmented players. To overcome these, we need to work together with the government, business players, as well as academia to facilitate an adaptive digital ecosystem to structure the unstructured world of logistics. As our aim is to offer end-to-end logistics solutions for businesses of all sizes, we are certain that the logistic sector in Indonesia needs to be more integrated, user friendly for the customers and systemically well-organized, by involving technology.

Q: How can Shipper solve some of these problems?
A: Indonesia’s logistics costs remain the highest compared to other countries in the region, adding up to 40 percent more on top of a customer’s total purchase amount in tier-two and tier-three cities. To address some of the inefficiencies, Shipper’s data-driven, tech-enabled and asset-light approach to consolidating fragmentation in Indonesia’s logistics market has enabled us to build a readily scalable network in four years that would have taken other companies years to build. We have seen that the value for sellers using Shipper’s network has been compelling as their logistics costs can be reduced by 15 to 20 percent , time saved in managing logistics for their business, and by extension enabling SME sellers to deliver a better experience for their customers.

We can fulfill these benefits by offering end-to-end logistics solutions ranging from warehousing, line haul, first mile and last mile delivery, and cross border. We provide advantages in technology, speed, and flexible-customisable solutions. There were a lot of pain points for customers, which drove me to come up with a simple solution that can enable those customers to ‘free to choose’ any logistics services they need with a click of a button.

Q: Shipper recently raised around $63 million in its Series B funding round? Do you plan to raise additional funds in the near future? Also, do you have plans to expand your business to other markets in Southeast Asia or beyond?
A: Our Series B financing comes less than a year after Shipper secured its Series A financing in June 2020 which will enable us to further invest in technology and significantly expand our logistics network. As our business continues to grow, as reflected in our investors’ confidence through the funding rounds, additional funds will be essential. We are confident that we have a great future ahead of us and it is our hope that we will be able to bring our values and solutions to other SEA markets in the near future, and it is just a matter of time before we expand globally.

Q: There are numerous logistics service providers in Indonesia operating at different capacities. What value proposition Shipper has to offer that differentiates it from its competitors?
A: Apart from the end-to-end solution for all sizes of business, our competitive advantages also include the speed and the flexibility of delivering customizable solutions to our partners and customers. I’m also happy to share with you that Shipper is backed by more than 1,900 talented employees who work hand-in-hand to deliver success to our customers.

More importantly, collaboration is our passion. We are aggregating a vast network of logistics with our logistics partners in a win-win situation. Whether it is local or foreign logistics companies, we see them as potential partners which will unlock more business opportunities in the future.

Q: Can you explain the benefits of Shipper’s API integration system to SMEs and MSMEs?
A: Different businesses have different needs and we are striving to provide an integrated and seamless logistics experience for all of them.

One of our values is that customers really come first, so I’m happy to let you know that we have happy customers. Our SMEs customers are happy because we provide free pick-up services to their homes and make it easy for them to track and manage their inventory through our fulfilment centers. We have around 110,000 delivery orders processed per day. Those services are complemented by our API integration services whereby online sellers or e-commerce platforms can tap directly into Shipper’s logistics network in one click. It reduces cost and time to look for the best delivery services available in the market.

Q: In your opinion, how vital is it for the logistics sector to embrace digital transformation?
A: In short, it is a must have for the logistics sector to embrace digital transformation. The Pandemic is one of the forcing factors for the digital transformation to be implemented in the logistics industry. It amplifies the “stay at home” economy during this difficult time. But nevertheless, a digital era has come, regardless of any situations. This has become our current, and future life. And driven by this e-commerce growth, Shipper is here to support Indonesia’s digital economy by playing a leading role in building highly digitalized logistics services.

Q: What is the outlook of the logistics sector in Indonesia, especially e-commerce delivery?
A: If we use China as a benchmark, at the moment China’s e-commerce penetration rate is at 24 percent while Indonesia is at 6 percent. And in terms of parcel volume, China is at 170 million (~10 percent population) while Indonesia is at 5 million with a population around 240 million. Therefore Indonesia’s potential growth can be 6x and 4x respectively in terms of penetration rate and parcel volume compared to China. I believe that digital logistics platforms will play a very important role in the logistics industry for years ahead. It offers clients and partners to select the best logistics provider for their business needs, with very competitive advantages in technology, speed and flexible-customizable solutions.

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Other investors that also participated in the funding round include Prosus Ventures, Floodgate, Lightspeed, Insignia Ventures, AC Ventures and Y Combinator.

Shipper co-founder Budi Handoko told the media, “We started Shipper four years ago as a result of our personal pain points in packing and delivering packages as online sellers. Building Shipper, we have always approached the problem from the angle of a micro, small and medium-sized business because that is who we are. We are excited to play our role in further empowering this segment and strengthening the nation’s logistics ecosystem.”

In September, another Indonesia-based logistics startup Waresix has raised around $100 million in its latest fundraising round. Investors who participated in the funding round include Softbank Ventures Asia, Pavilion Capital, Redbadge Pacific and Indonesian conglomerate Emtek. Existing investors such as EV Growth and Jungle Ventures also took part in the funding round for Waresix.

With regard to the funding, Andree Susanto, chief executive officer at Waresix told the media, “We are excited to on-board a group of high-quality long-term investors and partners that have committed to support Waresix in our journey to be the new engine for trade and commerce growth in Indonesia. The capital will be invested to develop the most robust logistics technology infrastructure in South East Asia, and further build out our world-class team to help us seize a large market opportunity.”

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The project spreads over 38 acre and will serve as the hub for light manufacturing and logistics operations. The logistics park will be ESR’s second development in Chakan. The company said in a statement that of the 38 acres, 26 acres are already leased and will be delivered by May 2021.

In this regard, Abhijit Malkani and Jai Mirpuri, country heads of ESR India, told the media, “Chakan has been a significant location for our expansion in India due to its established industrial ecosystem and increasing demand driven by national and global companies for Grade A spaces in this region.”

In December, it was reported that Singapore-based sovereign wealth fund GIC and Hong Kong-based logistics developer ESR Cayman have announced a $750 million joint venture (JV) to develop and acquire industrial and logistics assets in India. Both parties announced that they have entered into an 80:20 strategic partnership.

The joint venture formed by GIC and ESR Cayman will focus on Tier 1 and Tier 2 cities across India. To begin with, the JV will invest in a 2.2 million sq ft build-to-core asset, located around Mumbai.

Kishore Gotety, co-head (Asia ex-China) of real estate at GIC told the media, “Continued ecommerce growth in India over the long term, reinforced by rising internet penetration, is expected to drive strong demand for industrial and logistics assets.”

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Russell Pang, managing director for CEVA Logistics, Thailand told the media, “This new headquarters will be a tremendous asset for the Thai team with its excellent public transport links and focus on a modern working environment where they can be even more productive. We will use the relocation to further grow our multimodal business in one of Asia’s leading gateways.”

Last month, it was reported that CEVA Logistics expanded its rapid LTL services from China to other parts of Southeast Asia. The Rapid LTL connects China’s regional hubs through Shenzhen to Hanoi, Bangkok, Penang, Kuala Lumpur and Singapore. The company further expanded its footprint in Southeast Asia with a new warehouse located in Bien Hoa City in Vietnam.

In this regard, Elaine Low, CEVA Logistics’ regional managing director South East Asia & Pacific region told the media, “This new facility allows us to continue to expand our capabilities in support of our customers’ growth in Vietnam complementing our air, ocean and ground services. It will provide customers with additional storage and various services to meet their rapidly expanding supply chain needs in the country. Its strategic location means customers will also be able to take advantage of new transport infrastructure coming to the region as economic growth gathers further momentum”.

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According to Kuehne+Nagel, Apex has a major presence especially in the transpacific and intra-Asia. The company has roughly 1,600 employees and generates annual revenues of around $2.34 billion.

Detlef Trefzger, chief executive officer at Kuehne Nagel International AG told the media, “The combination of Apex and Kuehne Nagel provides us with an opportunity to offer our customers a compelling proposition in the competitive Asian logistics industry, especially in e-commerce fulfilment, hitech and emobility. We are looking forward to welcoming the Apex colleagues to the Kuehne Nagel family.”

Tony Song, chairman of the board of directors and chief executive at Apex said that with Kuehne Nagel, they have found a strategic shareholder and logistics group with more than 130 years of heritage. He told the media, “We are sure that with this transaction, we will be able to add value for our customers’ supply chains and expand our global logistics network. We will complement Kuehne Nagel’s existing global air logistics team while offering our management and key talents unique career opportunities.”

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In a statement, the company said, “SF Holdings is hoping to improve the company’s ability in offering one-stop integrated logistics solutions and to complete its international freight forwarding segment to further strengthen the company’s international business layout.”

The acquisition will help SF Holding improve its capacity by taking advantage of Kerry Logistics’international freight forwarding network across Asia, including China, Hong Kong and Taiwan, North Asia, Southeast Asia and South Asia, as well as the United States and Europe.

Earlier this month, it was reported that JD Logistics, the logistics arm of Chinese ecommerce giant JD.com, is preparing to list its shares in the Hong Kong Stock Exchange. The company is targeting a valuation of $40 billion as it looks to start trading in the second quarter of 2021.

In December, JD Health, the healthcare unit of JD.com, raised around $3.9 billion by selling its shares on the Hong Kong Stock Exchange. The company picked Bank of America and UBS Group as advisers. JD Health’s parent company JD.com raised $4.5 billion in its Hong Kong IPO.

During the same period, it was reported that JD Logistics has had early talks with banks to raise between $8 billion and $10 billion in a potential initial public offering overseas.

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AXA IM Alts has said that ESR, which is backed by Warburg Pincus, will oversee the development of the project. ESR will also support the leasing programme and management of the completed asset. With flexible unit sizes starting at 5,000 square metres, the logistics facility will be suitable for a diverse range of occupiers.

Laurent Jacquemin, head of Asia Pacific at AXA IM Alts told the media, “This is a rare opportunity to acquire a well-located site suitable for the development of a Grade A logistics facility, an asset class that has proved resilient against the backdrop of the global pandemic.”

Last month, GLP’s Japan-focused REIT has raised around $532 million in a global offering to acquire seven Japanese warehouse properties, the company said in a statement. Through the acquisition, the company is preparing for a busy season in the country’s logistics market.

The portfolio of assets purchased by GLP Japan Real Estate Investment Trust includes six Greater Tokyo facilities and one Osaka-area warehouse. They have a combined leasable area of roughly 328,000 square metres, the company said. The portfolio acquisition was completed on December 11th, 2020.

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