[Funding alert] Indonesian logistics startup Kargo raises $31M in Series A funding with a COVID-19 support pitch
Indonesia-based freight logistics marketplace Kargo Technologies (Kargo) announced that it has raised its Series A funding of $31 million, led by Silicon Valley-based Tenaya Capital. Other investors that participated in the round include Sequoia Capital, Intudo Ventures, Coca-Cola Amatil, Agaeti Convergence Ventures, Alter Global, and Mirae Asset Venture Investment.
As part of the round, Kargo also raised debt financing from some large regional banks and financial institutions.
CEO Tiger Fang said in a statement,
"We’re grateful for our wonderful investors who continue to support us, even in a time of financial uncertainty. Kargo pledges to be the most reliable logistics partner to ensure no disruptions to the supply chain of essential items in Indonesia. Our entire company is donating a portion of our salaries to this cause and we invite local businesses and organisations to get in touch so we can work this problem together.”
Kargo is also cooperating with numerous charitable organisations like Kita Bisa and PT Akar Indah Pratama, as their official logistics partner for delivery of meals and essential medical supplies to healthcare workers and patients at hospitals in Jakarta.
The Series A funding comes approximately a year after the startup's seed funding round which was $7.6 million, led by Sequoia Capital again, while also backed by the likes of Uber co-founder Travis Kalanick’s 10100 Fund, China’s Zhenfund, Indonesia-focused Intudo Ventures, ATM Capital, Innoven Capital, and Agaeti Ventures.
According to a report by TechCrunch, Kargo had an unusual pitch for its Series A fundraise, which is that it wants to help companies in Indonesia fight COVID-19.
The funding round closes as Kargo joins the battle to curb the growing COVID-19 outbreak in the world’s largest archipelago. The startup is seeding a Logistics Relief Fund by asking all employees to contribute a portion of their salaries to aid transporters and ensure no disruptions to essential supplies in Indonesia.
Kargo said, "We have dedicated 16 billion Indonesian rupiah (IDR) to establish the Logistics Relief Fund. This will aid transporters on our platform with their working capital cycles during this COVID-19 pandemic. A portion of the fund will also be donated to meet the current logistical needs of Indonesia starting with the delivery of food and essential supplies to hospitals. Transporters can apply now for access to the fund in order to help your business."
The startup further stated that the logistics relief fund will also extend to suppliers of medical equipment or essential goods such as drinking water and food. Kargo will offer its services and be the logistics partner in order to keep the medical workers in the country safe and healthy.
Using technology to connect the shippers with carriers in Indonesia, while cutting out middlemen, Kargo's mission is about providing transparency, and improving the service quality for end-users. The startup claims to have amassed over 6,000 active shippers and a network of over 50,000 trucks across Indonesia.
Edited by Kanishk Singh