Indonesian Logistics Startup Waresix Ups Series A Total to US$25.5 Million As It Grew More Than 30x in 2019 and Profitable
14 January 2020
Jakarta, 14th January 2020 – Waresix, Indonesia’s leading trucking and warehousing platform, today announced that it has raised an extension round from EV Growth and Jungle Ventures. The US$11 million extensions come only less than 6 months after the announcement of it’s latest US$14.5 million Series A round led by EV Growth in July 2019, bringing its total capital raised to more than US$27.1 million in equity in the last 18 months. The company also announced that it had raised debt and working capital facilities from leading regional banks and lenders to support its growth.
Andree Susanto, CEO of Waresix, said, “Our intercity trucking and transportation business has grown very rapidly in 2019 since we started in Q4 2018. This extension round is a further vote of confidence from our key investors and will help us extend our market leadership as we plan for our Series B in 2020.”
Edwin, Co-founder of Waresix, further shared that, “Our platform helps in connecting large and medium corporations who are looking to ship products to the small and fragmented trucking and transports companies. We have catered our solution beyond order matching to planning, routing, and scheduling, in order to help our team provide both customers and suppliers with personalized guidance, actionable insights, and innovative logistics solutions.”
“Customer-focus has been one of the ingredients to our success. In fact, it is our mission to grow our customers’ businesses by driving logistics efficiencies. Since the inception of the company, we realized that Indonesia presents a unique archipelago landscape, which means multimodal transportation and warehouse hub distribution paradigms will be critical to tackling the logistics sector. By combining our Smart-Matching algorithms and operation excellence, we set ourselves apart from other players and yield unprecedented services. We are both humbled and grateful to witness our strategic business decisions and product developments turn out to be right and beneficial for our customers all around the country. The year 2020 is an exciting year for us as we look forward to scaling our reach much more aggressively”, said Michael Gani, Chief Product Officer of Waresix.
Read More: Waresix Raises US$14.5 Million in Series A Funding Round Led By EV Growth
Yash Sankrityayan, Principal at Jungle Ventures, expressed, “We have been very excited by Waresix’s growth, the clients it has cracked, as well as it’s positive unit economics. Not only have they grown their monthly revenues more than 30x in 2019, but they have also done so with best in class margins compared to any other similar companies we have seen in South East Asia, and as a result, they are EBITDA profitable. Waresix has also added the top brands and corporates of Indonesia as their clients in a short period of time. All this speaks to the team’s understanding of the market need as well as their execution quality, and we are very keen to continue supporting them.”
Willson Cuaca, Co-founder of East Ventures and Managing Partner of EV Growth, further commented, “Waresix clearly is the winner in the first and middle mile logistics segment. We have been focusing on the rapid growth of the company and closing 2019 financial year with a profit. It was a small bonus for us as a growth investor. It’s been a long journey for us, Andree, and Edwin since we closed our seed deal in Pacific Place, Jakarta, within hours after our first meeting. We will keep doubling down on them.”
Waresix connects shippers and businesses with available transporters or trucks and warehouse space across Indonesia, providing better transparency, quality of service, and improving income for asset owners. Its expansive ecosystem now reaches over 30,000 trucks and 300 warehouse operators across the archipelago.
The archipelagic makeup of Indonesia has resulted in one of the highest logistics costs in Asia, accounting for nearly a quarter of the country’s US$1 trillion gross domestic product (GDP). In its 2018 Logistics Performance Index, the World Bank found that while Indonesia’s logistics sector has improved in recent years, the country’s logistics cost-to-GDP ratio of 24% still lags behind that of regional peers Thailand and Malaysia. This makes logistics in Indonesia a US$240 billion opportunity. This high logistics costs not only hampers Indonesia’s industrial competitiveness but also add to Indonesia SME’s cost of doing business in the domestic economy.