Sicepat Raises $170M Series B - Indonesian Logistics Growth

SiCepat Secures $170 Million in Series B Funding

SiCepat, an Indonesian logistics startup offering comprehensive services, has announced the successful completion of a $170 million Series B funding round. Established in 2014, the company initially concentrated on last-mile delivery solutions for small-scale merchants.

Over time, SiCepat broadened its scope to include support for major e-commerce platforms. Currently, its service portfolio encompasses warehousing and fulfillment operations, middle-mile logistics, and online distribution networks.

Investment Details

The Series B funding round saw participation from a diverse group of investors. These include Falcon House Partners, Kejora Capital, DEG (German Development Finance Institution), MDI Ventures (Telkom Indonesia’s investment division), Indies Capital, Pavilion Capital (a Temasek Holdings subsidiary), Trihill Capital, and Daiwa Securities.

SiCepat’s previous funding announcement involved a $50 million Series A round secured in April 2019.

Future Plans and Market Position

According to The Kim Hai, founder and CEO of SiCepat’s parent company Onstar Express, the newly acquired funds will be allocated to strengthening SiCepat’s leading position within the Indonesian logistics sector. Exploration of expansion into other Southeast Asian markets is also being considered.

The company reports current profitability and demonstrated the capacity to process over 1.4 million packages daily throughout 2020.

Indonesia's Logistics Landscape

The Indonesian logistics industry is characterized by significant fragmentation, leading to increased operational costs for businesses. Simultaneously, the surge in e-commerce, particularly accelerated by the COVID-19 pandemic, is driving heightened demand for delivery services.

SiCepat is among a growing number of Indonesian startups attracting investment aimed at enhancing the efficiency of supply chain and logistics infrastructure. Advotics, a supply chain SaaS provider, recently secured $2.75 million in funding, while Kargo and Waresix also represent notable players in this space.

Focus on E-commerce and Social Commerce

SiCepat specifically targets the e-commerce and social commerce sectors, including individuals utilizing social media platforms for sales. Sebastian Togelang, managing partner at Kejora Capital, highlighted the anticipated growth of the Indonesian e-commerce market.

He projects a five-year compounded annual growth rate of 21%, with the market reaching a value of $82 billion by 2025. Togelang believes SiCepat is well-positioned to serve a broad customer base, from large e-commerce companies to emerging social commerce businesses, which contribute approximately 25% to the overall digital commerce economy.

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