In the era of a rapidly growing retail industry, Waresix is in pursuit to modernize Indonesia’s legacy logistics system with an injection of digital growth. In a recent funding round, Waresix bagged in $14.5 million that will help the company to fulfill its dream of growing a logistics force to reckon with in Indonesia.
Indonesia is the 4th most populated country in the world after China, India and the US. Interestingly they are also the largest economy in the Southeast Asian Region and one of the fastest growing digital economies as well. They are one of the leaders of digital advancements among the ASEAN countries and this allows the tech-based companies to explore the huge growth avenues.
The Logistics business of Indonesia is over $240 billion but as far as logistics is concerned, it is a difficult job in Indonesia due to its geography. The country is one of the largest Archipelagos on Earth with over 17,000 islands including 5 major islands that people reside. This restricts the country to have very long and unhindered highways that are preferable for heavy goods transport over long distances. However, it should be kept in mind that currently, the total contribution of the logistics sector in Indonesia’s GDP is around 25-30% which is manifolds greater than the typical contribution of a mere 5% in the Western economies. Despite such a huge contribution from the current state of logistics, a large part of Indonesia is untouched or receives slow deliveries due to underdeveloped infrastructure.
As an attempt to further improve the physical connectivity across the country and also let the businesses to reach out to the tier-2 cities and remote areas, the government has planned a massive $400 billion infrastructure growth in the next few years. The plan would not only help the common people but also the companies especially the ones in the logistics industry such as Waresix.
Waresix is a logistics company founded in 2017 by Andree Susanto. It is currently in the ‘early-stage venture’ funding status with over 20,000 trucks and over 20 warehouse partners across Indonesia. However, the company needs to expand more to reach out to each and every corner of the country given the difficulty of the same discussed above.
The company counts East Ventures and its arm EV Growth as its lead investors. In the recent funding round, Waresix bagged $14.5 million for further growth. Apart from its long term investors, this time the company received investments from SMDV, which is the investment arm of Sinar Mas, an Indonesian Corporation. It also received investments from Jungle Ventures, a Singapore based corporation.
This money would be invested towards bringing in more transparency in the whole logistics process. There is a dire need of making the process more efficient by removing the middlemen that usually add to the cost and time. Waresix is aiming to provide a one-stop solution for land and sea transportation, cold storage and general cargo handling services as well.