Many startups are getting popular these days. They are trying their best to outdo their competitors. Waresix is one such startup that aims to modernize logistics in Indonesia. It has just banked $14.5 million to expand its 18 months old logistic business.
The Company calls its new investment as Waresix Series A. The biggest investor currently is East Ventures (EV). At this stage, EV is also running the Company’s affairs, with some involvement of SMDV. It is the main investor of Singapore’s Jungle Ventures and Indonesian corporation Sinar Mas. Previously, the startup got $1.6 million from Monk Hill Ventures, East Ventures, and SMDV. Waresix closed a starting round in 2018.
Logistics is the business of moving goods from one place to another. Waresix aims to digitize logistics. According to an estimate, the logistics business in Indonesia is worth $240 billion.
“Our main mission is to make logistics quite simple and in everyone’s reach. The great thing is that we have the resources to do it. With the new investment from different partners, we aim to expand our coverage to transform the $240 billion business of logistics in Indonesia,” said Andrea Susanto, Waresix Co-founder.
He also stated, “We will continue to develop our warehouse network and land transportation to the second-tier cities across the country. We will also work hard to make improvements in the supply chain process. Currently, there is a constant infrastructure growth in Indonesia due to the new policies of the government. These new policies will increase Waresix growth and increase its coverage area.”
The big logistic business in Indonesia is also due to the country’s geography. The archipelago has more than 17,000 markets. However, there are only five big ones. This poses a big challenge for logistics as they account for more than 25% of GDP. This GDP is less than 5% in popular Western markets. Having said this, Indonesia barely made its place in the top 50 in the World Bank’s Logistics Performance Index.
However, Indonesia has South Asia’s largest economy. It is also a market for digital growth in the region. Therefore, the Waresix plans to modernize logistics in the country is a well-thought plan.
Waresix is looking to make the whole logistics process more transparent for clients. It will also make the whole process efficient for truckers and other haulage companies. Its plan is to remove the intermediary, who just adds to the overall cost and reduce transparency. The Company will also look for ways to provide a one-stop solution to transportation by sea or land. It will also look over cargo handling and cold storage.
Today, Waresix has around 200 warehouses in Indonesia. It also has a fleet of over 20,000 trucks. The Company states that it plans to use this new investment to expand its coverage. This will include the additional capacity for warehouses and increasing land transport for remote areas of the country. The Company’s founder, Susanto and Edwin Wibowo believe that their policy aligns with the $400 billion commitment of Indonesia to improve transport and infrastructure system.
This vision is also consistent with East Ventures, which is the biggest investor in Waresix. EV has supported many young tech companies, who plan to use internet technology into the traditional industries in Indonesia. EV has invested in popular startups, like Kedai Sayur, which digitizes street vendors, Warung Pintar, which makes smart vendor kiosks, and Fore Coffee. The main inspiration behind Fore Coffee is China’s digital-first brand Luckin Coffee.
Although things look good for Waresix right now, it isn’t the only fish in the pond. Its biggest competitor is Kargo, which was started by a former Uber executive. Uber backs it. Kargo has remained quiet in the recent past. However, it just announced a $7.6 million funding. Ritase is another competitor, which just closed an $8.5 million deal this week. It has around 7,500 trucks.
