Indonesian logistics startup is about to close series A round from East Ventures, SIG, SMDV

Indonesian logistics startup Paxel is about to close a series A funding round, says industry sources. East Ventures is leading the round, with participation from Susquehanna International Group (SIG) and Sinar Mas Digital Ventures (SMDV). According to one source, the investors will put in a total of US$7 million.

In September, the company reportedly raised a seed round led by one of its founders, Johari Zein. He is also a founder of logistics provider JNE, which claims to be the industry leader in Indonesia, processing an average of 24 million parcels per month in 2018. One person familiar with the matter adds that the founding team put in US$10 million of their own money in the seed round.

Tech in Asia has reached out to Paxel for comment, and both East Ventures and SIG declined to comment on the matter.

Photo credit: Paxel

Founded by Bryant Christanto and Zaldy Ilham Masita, Paxel is an app-based logistics startup providing same-day delivery services for a flat rate to several major Indonesian cities. It reportedly fulfills same-city deliveries within eight hours and intercity ones within 10 to 15 hours. If it fails to do so, customers will get their money back.

The company currently partners with 1,500 individual couriers and serves both individual and corporate consumers. It also plans to expand beyond the islands of Java and Bali and into Sumatra, Kalimantan, and Sulawesi.

According to the World Bank’s 2018 Logistics Performance Index, Indonesia’s logistics sector – hampered by the country’s archipelagic makeup – still lags behind its regional peers despite improvements in recent years.

The country’s logistics scene, however, is growing fast, especially as it keeps up with the thriving ecommerce scene.