Advotics Raises $2.75M to Revolutionize Indonesian Supply Chain

Indonesia's Logistics Challenges and Advotics' Solution

The Indonesian e-commerce sector has experienced substantial expansion, particularly accelerated by the recent pandemic. This growth is creating increased pressure on the nation’s existing supply chain infrastructure.

However, Indonesia’s logistics sector is characterized by significant fragmentation. Companies frequently depend on numerous distributors to complete a single shipment. Furthermore, warehousing facilities remain largely concentrated in major urban centers.

Advotics Secures $2.75 Million in Funding

Advotics is addressing these challenges with software designed to streamline supply chain tracking. The company recently completed a $2.75 million funding round, spearheaded by East Ventures.

Established in 2016 by Boris Sanjaya, Hendi Chandi, and Jeffry Tani, Advotics has now accumulated a total of $5.5 million in funding.

Currently, the company serves a diverse clientele exceeding 70 businesses. These range from individual resellers to prominent corporations such as ExxonMobil, Danone, Reckitt Benckiser, Sampoerna, Kalbe, and Mulia Group.

The Scale of Fragmentation in Indonesia

Statistics Indonesia reports approximately 5 million small and medium-sized manufacturers operating within the country.

These manufacturers utilize a supply chain network comprising 15 million small to mid-sized distributors and around 288,000 large distribution companies.

This fragmentation results in elevated operational costs. Report Linker estimates that logistics expenses account for 25% to 30% of Indonesia’s gross domestic product.

Advotics' SaaS Solutions for Enhanced Efficiency

To improve logistical efficiency for its clients, Advotics provides Software-as-a-Service (SaaS) solutions. These solutions enable monitoring of nearly the entire supply and logistics chain.

This includes tracking warehouse inventory and optimizing delivery routes for drivers.

A key feature is product digitalization, utilizing QR codes to track products and combat counterfeiting. The platform also offers tools for sales representatives visiting retail locations, recognizing the continued importance of this method for customer acquisition.

Future Plans and Expansion

The newly acquired funding will be allocated to the launch of an online-to-offline system specifically designed for SMEs. It will also support the expansion of the company’s sales team.

This new system will enable sellers to integrate inventory and sales data from all channels, including physical stores, business-to-business transactions, and e-commerce platforms.

Competition in Indonesia's Logistics Tech Space

Advotics is one of several tech startups working to modernize Indonesia’s logistics infrastructure.

Other companies include Shipper, aiming to provide “Amazon-level logistics” to sellers, and Logisly, focused on digitizing truck shipments.

Waresix recently acquired Trukita to connect businesses with shippers, and Kargo, a truck shipment platform, has received backing from Uber co-founder Travis Kalanick.

Early Stage Event Information

Early Stage is a leading event providing practical guidance for startup entrepreneurs and investors.

Attendees will gain insights directly from successful founders and venture capitalists regarding business development, fundraising, and portfolio management.

The event covers all facets of company building, including fundraising, recruitment, sales, legal matters, public relations, marketing, and brand development.

Each session incorporates audience participation, allowing ample time for questions and discussion.