Teleport, the logistics unit of Malaysia’s budget airline operator AirAsia, has invested an undisclosed sum in Indonesia’s B2B trucking marketplace Kargo Technologies.
The deal connects Kargo’s trucking network with Teleport’s infrastructure, broadening the latter’s mid-mile capabilities beyond air cargo to 24-hour deliveries using the multi-modal routes across the archipelago.
As per an announcement, the financing was made in the form of convertible notes, using Teleport’s internally generated sources.
Through the partnership with Kargo, Teleport can open up the possibility of combining air connection with ground transportation capabilities, employing advanced technologies and expanding the network in the Southeast Asian logistics market.
For Kargo, it intends to expand its end-to-end freight coverage across the country through the support of Teleport’s regional presence, extensive network, and rich data.
“The strategic partnership with Teleport will help us become multi-modal, expanding in the value chain horizontally,” said Tiger Fang, Co-Founder and CEO of Kargo. “We expect the partnership to mutually benefit both parties by growing each other’s presence in Southeast Asia in 2022 as we look to solve the evergreen logistics issue in the region.”
Teleport has a presence in Malaysia, Thailand, Indonesia, the Philippines, India, Singapore and China.
Also read: How the logistics partner can make or break the online shopping experience
Founded in 2018 by former Uber employee Tiger Fang and technology veteran Yodi Aditya, Kargo (dubbed itself “Uber for logistics”) allows shippers, carriers, and truckers to connect, trade, and track goods via its marketplace of more than 75,000 vehicles.
The firm offers product suites that can integrate with businesses and empower supply chains to work with more transparency and efficiency. Its workflow tools also allow freight to be priced, tracked and billed with technology.
In 2020, the startup closed its US$31 million Series A round led by Silicon Valley-based Canva-backer Tenaya Capital. Coca Cola’s VC arm Amatil X is also a strategic investor of Kargo.
Over the past year, Kargo claims to have grown 15-fold its volume and attracted big clients such as Unilever, Coca Cola, Shopee, Maersk, among others.
According to Mordor Intelligence, the Indonesian freight and logistics market was valued at US$81.30 billion in 2020, and it is predicted to expand to US$138.04 billion by 2026, representing a 9.22 per cent annual growth rate.
—
Ready to meet new startups to invest in? We have more than hundreds of startups ready to connect with potential investors on our platform. Create or claim your Investor profile today and turn on e27 Connect to receive requests and fundraising information from them.
Image Credit: Kargo Technologies
The post AirAsia unit Teleport buys stake in Indonesia’s ‘Uber for logistics’ Kargo Technologies appeared first on e27.