PasarPolis is looking to expand its presence across Southeast Asia with a focus on Vietnam and Thailand in 2021. Indonesia-based insurtech startup PasarPolis has raised US$5 million in equity finance from International Finance Corporation (IFC), the startup announced yesterday. IFC is a sister [...]
Kargo Technologies becomes part of Coca-Cola Amatil Indonesia’s digital transformation plan
Kargo Technologies, a freight logistics startup based out of Indonesia, secured a strategic investment from Amatil X, Coca Cola Amatil (CCA) Indonesia’s corporate venture capital wing, CCA announced in a statement today. The statement did not disclose the amount. The acquisition is a move towards CCA Indonesia’s larger goal of digitizing its operations.
“Kargo is building the digital infrastructure to bring efficiency to Indonesia’s logistics system,” said Tiger Fang, Co-Founder and CEO of Kargo Technologies.
He added that tech-enabled logistics has caught on in many other markets such as India, China and the United States.
“In Indonesia, road logistics amount to 16% of GDP with approximately $40B spent on trucking each year. The industry is highly fragmented, with seven million trucks operating across 17,000 islands. 90% of trucking companies have 100 trucks or less and 75% have 20 trucks or less,” he continued.
Kargo Technologies provides freight logistics solutions integrated with technology. Shippers and logistics service providers, such as transporters and truckers, are brought onto a single platform which acts as a marketplace. They can connect, transact, and track shipments in real time via the platform, accessible through Kargo Technologies’ website and its mobile application.
Fang added, “Kargo connects businesses and their shipping needs with trucking companies that have vehicles with cargo space available nearby. Importantly, Kargo […] trucks are returning with fewer empty loads, allowing them to maximize revenue and better distribute costs.”
The investment comes a year after Kargo Technologies raised $7.6 million in a seed round, the statement said. The participating investors included Sequoia Capital India and Uber Co-Founder Travis Kalanick’s 10100 Fund.
CCA Indonesia, a subsidiary of Sydney-based CCA, manufactures, distributes and sells beverages. It said in the statement that the acquisition of Kargo Technologies would contribute to its digital transformation plans in support of the Indonesian government’s Making Indonesia 4.0 initiative.
CCA Indonesia President Director Kadir Gunduz said that the company “is very excited to create our future of many possibilities together with valuable partnerships. We hope that through this collaboration, we can contribute to the nation’s workforce readiness towards the Industry 4.0 and overall economic growth of Indonesia.”
“Kargo Technologies is our first startup investment in Indonesia and we are excited to be partnering with them to improve our overall logistics capability. Kargo is fulfilling two key land transportation routes for us and we expect this to increase over time as Kargo’s network expands,” he added.