Andalin Logistics Startup Books Series A Funding from BRI Ventures

BRI Ventures, through the Sembrani Nusantara Venture Fund, announced a series A funding for logistics startup Andalin. There is no mention of the value of the investment given, but it adds to the coffers of capital from pre-series funds A previously obtained by the company last October 2020 with a value range of 7-digit dollars.

In his remarks, Andalin Co-Founder & CEO Rifki Pratomo said, "We see an opportunity in digitizing logistics first mile, simplifying processes that are often convoluted and unclear for MSMEs, while reducing cost barriers. If all goes well, it will encourage MSMEs to carry out more import-export activities."

From the data submitted, local players account for 70% of the transportation and logistics industry in Indonesia, but the market condition is still very fragmented. As an illustration, the top 10 players control less than 30% of the market share.

Andalin alone last year managed to facilitate shipments of goods worth a total of $20 million and was close to positive EBITDA at the end of last year. With GMV reaching $100 million, they are also quite optimistic that they can book a new funding round by the end of 2021.

It is projected that the potential of this industry will continue to grow. One of the drivers is the increase in export demand from China, following the ratification of the Regional Comprehensive Economic Partnership (RCEP) which consists of 15 countries in the Asia Pacific. RCEP is expected to help increase Indonesia's overall exports by 11%; and increase investment by up to 20% within five years of the deal going into effect.

Established since 2016, Andalin has helped many businesses to carry out import-export shipments. Including having a B2B model to help shipping companies in Indonesia find affordable cargo transportation — by plane (Air Cargo & Air Courier) or by ship (Full Container Load & Low Container Load).

Besides that, Andalin also has services supply chain. This includes consulting services, customs management for export-import, and cargo insurance. They have also become Alibaba's official partners in Indonesia, bridging the needs of local entrepreneurs to embrace the international market through the Alibaba platform.

"We are very happy to support Andalin's mission in bridging the logistics gap which has historically been a major obstacle for Indonesian businesses trying to go global. This is in line with BRI's commitment to develop and empower the nation's MSMEs," said BRI Ventures CEO Nicko Widjaja.

Logistics startups continue to lure investors. In 2020, besides Andalin, there were 6 other startups that also received funding, including Webtrace, Logisly, Shipper, GudangAda, Kargo Technologies, and Waresix. Even the last investment round recorded by Waresix in series B managed to fulfill the total amount of funds raised $75 million.

-

Header Image: Depositphotos.com