
Tenaya Capital leads Series A round in Indonesia’s Kargo

Indonesian logistics platform Kargo Technologies has finalised a IDR504 billion ($31 million) Series A round led by Tenaya Capital, formerly the venture arm of Lehman Brothers.
Earlier in March, Kargo had announced that Amatil X Indonesia, the venture arm of Coca-Cola’s joint venture in Indonesia, had committed capital to the start-up.
It was part of a Series A funding round that has now been finalized with existing investors Sequoia Capital, Intudo Ventures and AC Ventures also contributing capital. Meanwhile, Alter Global, an emerging market-focused US GP, and South Korea’s Mirae Asset Venture Investment have come in as new investors. According to a statement, Kargo has also secured debt financing from regional banks and financial institutions.
Other seed investors in the company include Uber co-founder Travis Kalanick's 10100 Fund, China's Zhenfund, ATM Capital, and Innoven Capital.
Founded in 2018, Kargo is a logistics platform that connects shippers, transporters, and truckers. It was established by Tiger Fang, formerly a general manager with Uber in China and Indonesia, and Yodi Aditya, a software professional who previously worked at firms focusing on solving problems related to flight route optimization, enterprise software, and real-time payments.
Kargo says that the platform is currently used by more than 50,000 trucks and 6,000 active shippers. It expects to see demand for internet-enabled logistic services to grow in tandem with the rise in e-commerce usage in the country.
As the sector is currently witnessing reduced demand and heightened safety concerns due to the coronavirus pandemic, the start-up says it has also established a relief fund to to “aid transporters” and is working with local charities to help deliver meals and essential medical supplies to healthcare workers and patients in Jakarta.
“Kargo’s tech provides unique value in a time when logistics efficiency is paramount in Indonesia. Whether it’s keeping retail shelves stocked with minimal human contact or making e-commerce orders more fluid across the nation, our team believes we can help solve this problem,” said Aditya, Kargo’s CTO.
Other trucking marketplaces operating in the country include Waresix and Golden Gate Ventures-backed Ritase. The two start-ups claim to have a fleet size greater than 20,000 and 7,500 trucks respectively. Indonesian ride-hailing giant Gojek also offers Go-box, an on-demand freight truck booking option within its app ecosystem.
Recently, Tenaya also invested in TaniHub, an online marketplace for farm products.
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