Locad Secures $4.9M Seed Funding - Sequoia Capital India Leads

Southeast Asia E-commerce Logistics: Locad Secures $4.9M Seed Funding

The e-commerce sector in Southeast Asia is experiencing substantial growth. However, the logistics infrastructure in numerous markets is struggling to maintain pace with this expansion.

Consequently, sellers frequently encounter difficulties in delivering products to customers, particularly those located outside of major urban centers, and in effectively managing their supply chains.

Locad's End-to-End Solution

Locad, a startup focused on providing a comprehensive “end-to-end solution” for cross-border e-commerce businesses, has recently announced the completion of a $4.9 million seed funding round.

This investment is intended to address the logistical challenges faced by e-commerce companies operating in the region.

Investment Details

Sequoia Capital India’s Surge led the funding round, with Locad currently participating in the program’s fifth cohort.

Additional participation came from investment firms including Antler, Febe Ventures, Foxmont, GFC, and Hustle Fund.

The round also saw contributions from a number of angel investors: Alessandro Duri, Alexander Friedhoff, Christian Weiss, Henry Ko, Huey Lin, Markus Bruderer, Dr. Markus Erken, Max Moldenhauer, Oliver Mickler, Paulo Campos, Stefan Mader, Thibaud Lecuyer, Tim Marbach, and Tim Seithe.

Company Background and Expansion

Founded in Singapore and Manila by Constantin Robertz, Jannis Dargel (formerly of Zalora), and Shrey Jain (previously Grab’s lead product manager of maps), Locad has expanded its operations.

The company now maintains offices in Australia, Hong Kong, and India, demonstrating its commitment to regional growth.

Locad aims to bridge the gap between initial and final delivery stages, allowing e-commerce businesses to offer reduced shipping costs and quicker delivery times.

This, in turn, allows companies to dedicate more resources to crucial areas like marketing and sales optimization.

Growth and Client Base

Since its inception in October 2020, Locad has served over 30 brands and processed nearly 600,000 items.

Its clientele includes both emerging startups and established international brands, such as Mango, Vans, Payless Shoes, Toshiba, and Landmark (a prominent department store chain in the Philippines).

Competitive Landscape

Locad is part of a growing number of Southeast Asia-based logistics startups that have recently secured funding, including Kargo, SiCepat, Advotics, and Logisly.

Locad seeks to distinguish itself by offering a versatile solution compatible with various sales channels and integrated with a broad network of shipping providers.

Asset-Light Model and Technology

According to Robertz, Locad maintains an asset-light business model through partnerships with warehouse operators and facility managers.

The core of Locad’s offering is a cloud-based software platform functioning as a “control tower,” providing users with real-time visibility into inventory and order status across its network.

Currently, the company operates seven fulfillment centers, with four located in the Philippines and the remaining three in Singapore, New South Wales (Australia), and Hong Kong.

Funding will be allocated towards expansion into additional Asia-Pacific markets, with a primary focus on Southeast Asia and Australia.