Luwjistik Co-Founders Syed Ali Ridha Madihid (left), Wong Yingming
Singapore-based e-logistics startup Luwjistik raised a US$1.1 million (IDR15.8 billion) seed funding round led by East Ventures with the participation of Arise, a fund that is the result of a collaboration between MDI Ventures-Finch, and Global Founders Capital. The company plans to use the funding to grow its local and regional teams in Singapore, Indonesia, and Malaysia; develop its platform; and expand its reach.
Luwjistik is a relatively young company, having been founded in July by logistics and e-commerce veterans Syed Ali Ridha Madihid and Wong Yingming. Their vision is to develop a logistics infrastructure with an instantaneous regional reach through a network of global partners, enabling clients to benefit from a standardised workflow of ease and transparency.
According to Luwjistik Co-Founder & CEO Syed Ali Ridha Madihid, the solution is built to respond to the rise of e-commerce popularity as triggered by the pandemic, which has forced logistical companies to expand their operations. “Many people are unable to travel to build their network and connections on the ground. Many are also still relying on the old ways of doing things, and are unable to transform themselves digitally to keep up with the demands,” he said on Thursday.
Through the Luwjistik platform, clients only have to integrate a single API to connect themselves to selected partners and go through the transaction process all the way to the end. A network of almost 30 partners in Singapore, Malaysia, Indonesia, the Philippines, and Thailand is now connected through the Luwjistik platform. Some of the companies included Ninja Van, J&T Express, and JNE Express. DHL eCommerce and YCH Group Pte Ltd are examples of clients that have used the platform.
Madihid said that there are key main values that the company offers. First, in terms of ease, clients will be able to access a network of potential partners in Southeast Asia that offer deliveries of imported goods in domestic or regional markets. They can pick the service provider that suits their needs.
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Second, with its standardisation, clients can navigate cross-border documentation, workflow, and fee transparency matters more easily. Lastly, with its single API, the platform enables easy and fast data management, direct booking, contract signing, document signing, and payment processing in just one platform.
According to Madihid, what the company is trying to achieve here is to combine the technology and knowledge that the co-founders have built after working in the sector to connect the different points of the supply chain. In the end, they aim to help clients navigate the challenges of cross-border shipping, especially in a developing region –where it can be fragmented.
“In the end, as there is an urgency to accelerate the digitalisation of the logistics sector to meet the demands of the market, Luwjistik provides a fast, efficient, and safe tech solution to help companies grow,” he said.
Another one for the logistics sector
Prior to announcing this funding round for Luwjistik, East Ventures had also announced an investment into another e-logistics startup –McEasy. This segment has been experiencing an increase in popularity during the pandemic due to its crucial role in supporting the growth of the e-commerce industry.
From early 2019 to July 2021, the DailySocial research team noted that there are around 16 funding announcements involving a tech-based logistics company, totalling the investment to US$586 million. Of all these companies, there are at least four startups that have more than US$100 million in valuation: SiCepat, Waresix, Shipper, and GudangAda.
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The article East Ventures Suntik Pendanaan Tahap Awal 15,8 Miliar Rupiah untuk Luwjistik was written by Marsya Nabila in Bahasa Indonesia for DailySocial. English translation and editing by e27.
Image Credit: Luwjistik
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