Paxel Pockets Series C Funding of 340 Billion Rupiah
Investors involved in Paxel's funding this time include Astra Digital Internasional, Central Capital Ventures, and MDI Ventures
Logistics startup Paxel pocketed series C funding of $23 million or more than 340 billion Rupiah. This fourth round was injected by PT Astra Digital Internasional (ADI), Central Capital Venture (CCV), MDI Ventures, Susquehanna International Group (SIG), Endeavor Catalyst, FJ Labs, and PT Amsaka Investama Sejahtera.
Paxel previously obtained $9,4 million series B funding or equivalent to IDR134,7 billion in March 2022 led by MDI Ventures, and participation from SIG, PT Luminary Media Nusantara, Bamboo Gold Services, and Galilee Capital Ventures.
In his official statement, Astra President Director Djony Bunarto Tjondro said this investment is in line with the company's efforts to accelerate digital transformation through innovative products and services. "We have had digital roadmap to map digitalization developments that are relevant to the business and increase competition and the digital capabilities of the Astra Group," he said.
CCV President Director Armand Widjaja added that currently his party has expanded its investment focus to embedded finance, such as logistics and trade, not only fintech. He believes that Paxel's business growth will have a major impact on the MSME industry in Indonesia.
Founded in 2017, Paxel offers a number of logistics services that help MSME players to deliver goods through Paxel same day delivery, smart lockers PaxelBox. PaxelBig, PaxelMarket, and e-commerce waste pick-up service PaxelRecycle.
As of June 2022, Paxel was recorded to have served more than 2000 MSMEs, 2 million users, and sent more than 17 million packages with claims of timeliness above 98%. Its coverage covers 11 provinces in 86 regencies/cities, 589 sub-districts and 4.846 villages on the islands of Java, Bali, Sulawesi and Sumatra.
Furthermore, this funding will be used to expand Paxel's operational reach outside Java, as well as strengthen last mile and cold chain fulfillment to serve the B2C and B2B segments. It will also strengthen human resources and technology in order to achieve sustainable growth.
In addition, this funding will open up pintu collaboration in the development of Paxel services for the giant ecosystem network owned by Astra, Telkom, and BCA.
Paxel claims that in the last four years it has pocketed revenue and user growth of 240% and 176% per year, respectively. Besides that, gross margins also called growing 3,6 times and being positive in the third quarter of 2020.
"Logistics industry in Indonesia is one of the largest contributors to national GDP and continues to grow during the pandemic. Situation lockdown triggering consumers and businesses to look for alternatives to distribute products to consumers, especially in the F&B sector. We see Paxel has a solution in this area and has built an infrastructure that enables fast delivery," said Kenneth Li, managing partner at MDI Ventures.
Based on data from the Central Statistics Agency (BPS) in the third quarter of 2021, Indonesian Supply Chain (SCI) estimates that the logistics sector can contribute Rp699,1 trillion to GDP or grow 1,08% (YoY) in 2022
SCI Chairman Setijadi projects that the performance of the logistics sector, including transportation, warehousing, and couriers, will improve throughout 2022. Growth in this sector will be driven primarily by the manufacturing sector, especially non-oil and gas, followed by agriculture, fisheries and trade. In 2021, the non-oil and gas processing industry will be contributed mostly from the food and beverage industry (38,4%), chemical and pharmaceutical (11,4%), metal and electronic goods (8,7%), transportation equipment 8,4% , as well as textiles and clothing 6,1%.
Secretary General of the Indonesian Logistics and Forwarders Association (ALFI) Akbar Djohan added, logistics industry growth domestically in 2022 will be hoisted from two sectors; (1) a market that has been integrated with digital technology and (2) logistics that are important and become the main commodity to boost state revenues.