Sequoia leads $7.6m round for Indonesia's Kargo
Sequoia Capital India has led a $7.6 million round for Indonesian logistics services provider Kargo Technologies.
Additional investors include 10100 Fund, a vehicle launched by Uber co-founder Travis Kalanick, Pandu Sjahrir, a general partner at Jakarta-based Agaeti Venture Capital, and Patrick Walujo, a co-founder and managing partner of Singapore’s Northstar Group. The capital will be used for technology development and hiring additional staff.
Kargo was founded last year by Tiger Fang, a former managing director at Lazada Group who launched Uber’s operations across Southeast Asia and provided logistics industry venture development services for start-up incubator Rocket Internet. The company operates a mobile-accessible marketplace that allows shippers, truckers and transporters to connect and transact in real time across the entire Indonesian archipelago.
Demand for freight services is expected to grow with increasing internet penetration and e-commerce activity in Indonesia. Kargo estimates that nearly a quarter of the country’s gross domestic product currently comes from logistics despite inadequate infrastructural support for the industry. According to a release, the company is already facilitating hundreds of orders a week for various e-commerce and fast-moving consumer goods companies.
Digital companies will require improved logistics and infrastructure services to meet scaling challenges related to Indonesia’s geographically and economically fragmented landscape. Infrastructure in the country has been traditionally dominated by the government, but is expected to see more private sector investment, including private equity, as state-owned enterprises reach capacity limits and seek alternative financing models.
Sequoia India closed its sixth fund at $695 million last year with a mandate that encompasses early and growth-stage companies in the technology, consumer, and healthcare sectors across India and Southeast Asia. The firm has made around 200 investments, with previous activity in Indonesia including participation in a $1.5 billion Series E round last year for Go-Jek, a ride-hailing giant that has expanded into various online logistical segments.
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