Pocketing 504 Billion Rupiah Funding, Kargo Technologies Provides Access to Capital for Logistics Partners

Marketplace logistics linking company and trucking service provider, Kargo Technologies, today (13/4) announced that it has secured US$31 million (approximately 504 billion rupiah) in a series A round. This investment was 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.

In this funding round, Kargo also managed to secure debt-based funding (debt financing) from a number of regional banks and financial institutions. Previously Kargo technologies also announced the acquisition first investment from corporate venture capital (CVC) Amatil

In the early stages, they have also received funding of US$7,6 million (approximately 123 billion rupiah) led by Sequoia India and a number of investors.

Provide funding to logistics partners

Kargo Technologies CEO Tiger Fang said that most of the funding will be used to prioritize business operations and develop products according to the current situation of the spread of Covid-19. For truck owners, companies can help cash flow those with fast funding products, which are much needed in the current circumstances.

For truck owners who want to apply for additional business capital, they can access special site provided by Kargo Technologies. Hope this helps cash flow logistics partners related to their business capital, because most of the truck owners are only paid about 3 months later.

The company also finances the Logistics Relief Fund movement by urging all employees to participate and contribute a portion of their salaries. The Logistics Assistance Fund will be used to assist logistics carriers and ensure there are no disruptions in the delivery of basic goods in Indonesia.

"We are grateful for our investors who continue to provide extraordinary support in the midst of financial uncertainty. Kargo promises to be the most reliable logistics partner to ensure there is no disruption in the supply chain of basic goods in Indonesia. Our company has donated part of our salary to this issue and we are also inviting other local businesses and organizations to contact us so we can work things out together," said Tiger.

In order to minimize physical contact, Kargo has also implemented an EPOD (Electronic Proof of Delivery) system in the delivery mechanism. This feature that can be found on the Kargo platform also makes it possible to reduce the direct exchange of documents to reduce the risk of COVID-19 infection.

"Cargo technology has a unique selling point at a time when logistics efficiency is very important in Indonesia. Starting from maintaining the amount of stock for retail needs with minimal physical contact or facilitating transactions E-commerce across the country, we believe that Kargo can solve this problem," said Kargo CTO Yodi Aditya.