Indonesia's Sicepat secures $170m Series B
Indonesian logistics start-up Sicepat has raised a $170 million Series B round from investors including Temasek Holdings’ growth-stage PE unit Pavilion Capital.
It has been described as the largest Series B ever seen in Southeast Asia. The deal also highlights growing investor interest in service providers tackling the supply chain challenges created by rapidly growing e-commerce activity in Indonesia's fragmented geography. Logistics costs are said to account for up to 30% of the country's $1 trillion GDP.
Pavilion is doubling down on this theme, having joined a $75 million Series B for Indonesian trucking business Waresix in September. Other start-ups leveraging VC interest in this area include trucking platforms Logisly and Ritase, as well as Kargo, which describes itself as Indonesia’s only pure online marketplace for the trucking industry.
Much of the most recent activity has recognized that COVID-19 is creating a strong shift toward food delivery, with Sicepat acquiring a 51% stake in food ordering platform DigiResto earlier this year. This has coincided with an increased industry focus on supporting small to medium-sized enterprises (SMEs) that may be struggling to adapt to pandemic-related market conditions.
Sicepat raised a $50 million Series A in 2019 featuring Kejora Ventures and Barito Teknologi, an investment arm of Indonesian energy conglomerate Barito Pacific. Kejora returned for the Series B alongside Falcon House Partners, Indies Capital, Trihill Capital, and MDI Ventures, a unit of Telkom Indonesia. They were joined by Daiwa Securities and German development finance institution DEG.
"This financing round is designed to further fortify Sicepat's position as the leading end-to-end logistics service provider in the Indonesian market and potentially to explore expansion to other markets in Southeast Asia,” The Kim Hai, founder and CEO of Sicepat's parent company Onstar Express, said in a statement. “We are even more prepared to support and empower millions of SMEs and local businesses not only to survive, but to thrive during these challenging times.”
Sicepat's operations encompass last-mile delivery, warehousing and fulfillment, commerce-enabling, online distribution, and middle-mile logistics. The company claims that it was profitable and able to fulfill more than 1.4 million package deliveries per day in 2020. This compares to 200,000 packages per day at the time of the Series A.
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