1. Startups

Kargo Tech Launches "KargoNexus", Integrated Logistics Management Solution

The logistics sector is gaining significant growth momentum, on the funding side, local logistics startups managed to book $369,3 million, a 2x increase from the previous year.

Based on data from the Indonesian Logistics Association (ALI) in 2021, the flow of goods shipments grew by up to 40% during the pandemic. During this period, the pharmaceutical, medical device, and consumer goods industries (consumer goods) recorded as having the largest shipping contribution.

However, digitalization also brings complexity to the management of logistics data and fast delivery of goods on a large scale during the pandemic. However, there are still many of them who carry out logistics activities manually.

Seeing this situation, CargoNexus which is one of the products of Tech Cargo previously known as Kargo Technologies, is present as a logistics management solution. The platform wants to make it easier for companies to digitize logistics and supply chain systems in the company.

"One of the challenges that are still being faced today is the mindset of business actors who are often still quite closed to changes in the way supply chain operations work digitally. KargoNexus has the passion to continue to be close to all users from the sender, vendor, and driver layers, with programs - a program that has a local approach," said Head of Product & Enterprise Solutions Kargo Tech Brian Aditya Tedjasaputra to DailySocial.id.

KargoNexus has a business model and monetization strategy hybrid subscription and cross-selling. As one of the platforms in the Kargo Technologies ecosystem, KargoNexus is considered to be ideal for businesses to get more value, both from fulfilling their needs truckingmarketplace, as well as all the smart logistics and transportation features inside software CargoNexus.

In summary, KargoNexus wants to help companies in managing holistic logistics management and integrated company supply chains without boundaries, shipment monitoring and the ability to view logistics partner data performance centrally.

"Through this solution, we want to help companies achieve 100% of their productivity, from the supply chain to analyzing logistics transactions in real time" real-time so that they can accelerate their business and win the competition," said Brian.

Tech Cargo Plan

Until now, Kargo Tech has served more than 13 thousand shipper throughout Indonesia. In general, their services are made to bring together shipper and vendor easily and quickly.

Kargo Tech is committed to logistics transparency, best service quality, and increasing revenue for vendors or asset owners. Until this year, the main composition of clients from Kargo Tech is in the FMCG, CPG, Manufacturing, Agri and Aquatech, Heavy Equipment, and Raw Materials industries.

"In 2022, Kargo Tech will continue to focus on developing the user base in key industries that it has successfully achieved in 2021, and also has a target to target the B2B market segment in Indonesia. vertical industry other major. Such as Pharmaceutical, Automotive, and also General Goods," said Brian.

Another target that Kargo Tech wants to achieve in 2022 is intensive expansion to the islands of Sumatra, Bali and Sulawesi, as well as pursuing the growth of transactions and active users on its platform by double digits per quarter.

At the beginning of 2020, Kargo Tech has pocketed series A pendanaan funding worth IDR 548 billion. The investment is led by Silicon Valley's Tenaya Capital. The participating investor groups are Sequoia India, Intudo Ventures, Amatil X, Agaeti Convergence Ventures, Alter Global, and Mirae Asset Venture Investment.

Logistics business throughout 2021

The pandemic becomes own blessing for the logistics industry. In addition to the needs that continue to increase along with the development of e-commerce-based businesses, there are still many development areas that can be explored. Currently the logistics sector in Indonesia is estimated to be worth $275 billion, growing at ~16% CAGR between 2015-2020.

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Seeing these opportunities, the trend of funding to logistics startups also continues to grow. This is a good signal, because the investor hypothesis also validates the potential for business development in this landscape. Compared to the last three years, the funding that occurred this year increased drastically in value. According to data DailySocial.idIn 2021, at least $369,3 million was disbursed by domestic and foreign investors for local logistics startups.

Trends in funding for logistics startups in Indonesia / DailySocial.id

Besides Kargo Tech, in Indonesia there are also several other players who focus on providing logistics management services, including McEasy, TranTrack, Wetruck, Shipper, Clodeo, etc.

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