Indonesian logistics startup Shipper bags $5m from Y Combinator, Insignia, others

Indonesian logistics startup Shipper has raised US$5 million in seed funding from Y Combinator, Lightspeed Venture Partners, Floodgate, Insignia Ventures Partners, and Convergence Ventures.

A logistics yard at Jakarta’s Tanjung Priok port / Photo credit: 123rf

Founded in 2017, Shipper serves small and medium-sized businesses by allowing them to choose the best rates across major carriers, such as its partners Gojek, Grab, J&T Express, Lalamove, and POS Indonesia, among others.

Through its platform, sellers can create, track, and manage their orders. Its pickup services are done through couriers who collect packages and distribute them to different logistics providers in the country, which act as micro-fulfillment centers.

On top of that, the startup also provides an API, which enterprises can plug into their apps or websites to add shipping and tracking services.

Shipper plans to use the fresh investment to expand its network and make new hires, co-founder Budi Handoko told Tech in Asia. Within the next year, the startup wants to have a network of 1,000 micro hubs and up to 20 fulfillment centers.

“Foreign expansion is in the plan for Thailand, Vietnam, and the Philippines,” Handoko said regarding the company’s future plans in terms of geographical expansion.

According to World Bank’s Logistics Performance Index report for 2018, Indonesia’s logistics sector, which is hampered by the country’s archipelagic makeup, still lags behind its regional peers such as Malaysia, Vietnam, and Thailand despite improvements in recent years.

See also: Indonesia’s logistics scene is growing fast. Here are the main players

Other startups in the country looking to advance the sector include end-to-end logistics startup Waresix, which bagged US$14.5 million in a series A round led by EV Growth earlier this year.

Another player is cross-border-focused Janio, which runs a platform that connects businesses with logistics providers for each part of the supply chain.

Ritase, which is focused on the trucking sector, also recently secured US$8.5 million in a series A round led by Golden Gate Ventures to branch out into inter-island logistics and expand regionally.