Focusing on the last mile service, Indonesian logistics company SiCepat received US$170 million in financing

It is understood that SiCepat provides last-mile delivery services to social e-commerce players in Indonesia , and provides services such as warehousing and distribution , mid-haul logistics and online distribution.

The deal would value SiCepat at $744 million, according to data intelligence platform VentureCap Insights .

The round was backed by investors including Falcon House Partners , Kejora Capital , Temasek’s Pavilion Capital , MDI Ventures , German development finance institution DEG , Indies Capital , Tri Hill and Daiwa Securities.

SiCepat said it will then serve larger e-commerce platforms and now it is planning to further invest in its logistics services and infrastructure to strengthen its business in Indonesia.

Kim Hai, founder and CEO of SiCepat’s parent company Onstar Express, said the funds will be used to “strengthen SiCepat’s position as a leading end-to-end logistics service provider in the Indonesian market, with the potential to explore expansion into other Southeast Asian markets ”.

In addition, SiCepat said it is already profitable and by 2020, it will be able to complete packaging services of more than 1.4 million packages per day .

Sebastian Togelang, managing partner and corporate director at Kejora Capital, noted that segments such as e-commerce and social commerce can create lucrative growth opportunities.

Togelang believes that SiCepat is ideally positioned to serve clients ranging from e-commerce giants to social commerce players, which are estimated to contribute 25% of the total digital commerce economy.

Logistics issues have always been a focus of attention for cross-border e-commerce participants, and in Southeast Asia, sea and truck transportation will play a greater role in the cross-border e-commerce market.

The COVID-19 pandemic has accelerated online spending in the region, with the market expected to reach $153 billion by 2025, according to regional e-commerce logistics specialist J&T Express.

This was predicted before the pandemic, and as online shopping for goods continues to expand, J&T predicts that more goods will shift to ocean freight.

Some freight forwarders in Southeast Asia are also increasing their freight volumes to cross-border trucking as air cargo volumes decline.

The current logistics situation in Southeast Asia is also crucial to the development of local logistics companies. SiCepat 's last-mile delivery may also bring better user experience to local consumers.

logistics

Cross-border e-commerce market

Southeast Asia