Kargo Technologies is seeding a US$1 million Logistics Relief Fund to ensure delivery of essential supplies amid COVID-19 lockdown
Indonesian freight logistics startup Kargo Technologies announced in a company statement on Monday that it has closed its Series A funding round with US$31 million. The round was led by Silicon Valley-based Canva-backer Tenaya Capital. The investment comes days after the startup secured strategic funding from Coca Cola’s Venture Capital (VC) arm Amatil X.
Existing investors Sequoia Capital India and Southeast Asia, Intudo Ventures, Amatil, Agaeti Convergence Ventures, along with new investors, Alter Global, and Mirae Asset Venture Investment also participated in the latest round of financing. As part of the round, Kargo also plans to secure debt financing from some of the largest regional banks and financial institutions, the statement claimed.
With the latest investment, the total funding raised by Kargo has reached $38.6 million. The startup secured seed funding of $7.6 million in 2019, in a round led by Sequoia Capital. Other seed backers included Uber co-founder Travis Kalanick’s 10100 Fund, China’s Zhenfund, Intudo Ventures, ATM Capital, Innoven Capital, and Agaeti Ventures. It was one of the largest recorded seed-stage investment deals at the time.
Founded in November 2018 by former Uber employee Tiger Fang and technology expert Yodi Aditya, the startup describes itself as Indonesia’s ‘Uber for logistics.’ It aims to digitize Indonesia’s largely offline logistics network to eliminate existing inefficiencies by allowing shippers to find transportation providers online through the Kargo app.
Kargo has amassed more than 6,000 active shippers and a network of over 50,000 trucks across the country.
“Kargo’s tech provides unique value in a time when logistics efficiency is paramount in Indonesia,” said Chief Technology Officer (CTO) Yodi Aditya in the statement.
Amid the growing global coronavirus pandemic, Kargo has joined the fight against COVID-19 by seeding a Logistics Relief Fund of $1 million for transporters moving essential supplies, and has asked its employees to contribute a portion of their salaries. The company’s leadership team will contribute 75% of their salaries, while CEO Tiger Fang has forgone his salary for 2021.
“We have mobilized to answer this call to arms and do whatever is in our power to fight COVID-19 here in Indonesia,” CEO Tiger Fang said.
According to the company statement, the startup has partnered with charitable institutions like Kita Bisa and PT Akar Indah Pratama to deliver meals and essential medical supplies to frontline healthcare professionals and patients at multiple Jakarta hospitals. The firm has also implemented an electronic proof of delivery mechanism on its platform to limit physical contact between users.
“Whether it’s keeping retail shelves stocked with minimal human contact or making e-commerce orders more fluid across the nation, our team believes we can help solve this problem,” Aditya added.
“We’re grateful for our wonderful investors who continue to support us, even in a time of financial uncertainty. Kargo pledges to be the most reliable logistics partner to ensure no disruptions to the supply chain of essential items in Indonesia. Our entire company is donating a portion of our salaries to this cause and we invite local businesses and organizations to get in touch so we can work this problem together,” Fang said in the statement.
Header Image courtesy of Kargo Technologies
