Eight Roads-backed OpenLogi bags $16.7m in ongoing series C round

OpenLogi, a Japan-based logistics fulfillment platform, announced that it has raised over 1.7 billion yen (US$16.7 million) in the first closing of its series C funding round from Signifiant Inc., Shinsei Corporate Investment, Sumitomo Corporation, Seino Holdings, Sojitz Corporation, Chiba Dojo, and debt financing.

Photo credit: OpenLogi

To date, the company has raised over 2.7 billion yen (US$26.3 million) in total, and it plans to complete this round by the end of 2020.

According to a statement, the new funds will go into expanding its team, particularly its engineering muscle, to strengthen the company’s product development capabilities.

With online shopping gaining more traction especially amid the Covid-19 pandemic, the demand for logistics has also increased. But the industry faces many hurdles such as a shortage of workers, an aging population, and an increase in workload.

To address them, OpenLogi aims to bring in the concept of “physical internet” by helping shippers, warehouses, and delivery companies work together by standardizing operations and systems.

Another one of its goals is to digitize the physical logistics system, which it plans to do by connecting warehouses and delivery providers based on big data and algorithms. This allows it to bring together product information, shippers, transporters, distribution centers, stores, and residences into one network similar to the internet of things.

Currently, OpenLogi has more than 8,000 registered users and over 40 affiliated logistics companies nationwide, it said in a statement.

The latest investment comes after the company – which is also backed by Eight Roads Ventures and Infinity Ventures Japan, among others – received an undisclosed amount of money last year.

Currency converted from Japanese yen to US dollar: US$1 = 104.71 yen.