TransTrack in talks to buy fleet management firm after $12m round

TransTrack, an Indonesian fleet management startup, is a believer in M&As when it comes to fast-tracking its business expansion.

Case in point, the company is in talks to acquire a majority stake in a local port and marine fleet management solution provider, TransTrack co-founder and CEO Anggia Meisesari tells Tech in Asia. However, she declined to name the company.

Anggia Meisesari and Aris Pujud Kurniawan, co-founders of TransTrack / Photo credit: TransTrack

If the deal goes through, it will be funded with some of the proceeds from TransTrack’s recently raised US$12 million series A round, which was co-led by global investment firm Eurazeo and Singapore-headquartered Cocoon Capital, Meisesari says.

Founded in 2019, TransTrack offers an AI and IoT-powered fleet management system and transportation solutions for logistics companies. The company claims that it can help clients reduce operational costs by up to 30% and increase productivity by as much as 40% by digitizing their fleet operations.

“We are looking for a company that already has the software and features that can complement TransTrack’s solutions in port and marine operations, as well as the expertise in installing advanced equipment on vessels, tug boats, and barges,” the CEO explains.

While TransTrack already serves ship owners, Meisesari feels that installing advanced marine equipment is not the startup’s strength.

The company hopes to close the acquisition before the end of the year.

After that, it is considering venturing into the mining sector to help miners in the country increase the safety and efficiency of their vehicles, the CEO adds. But this depends on whether it can find a suitable target in the sector.

TransTrack / Photo credit: TransTrack

Indonesia is a global player in mining, supplying an estimated one-fourth of the world’s mineral supply. Many miners in the resource-rich country are SMEs that don’t have enough cash to digitalize their logistics operations.

TransTrack, which has clients in different regions across Malaysia, is also looking to beef up its operations in the country to tackle halal food transportation.

In early September, TransTrack signed an agreement with YGL World Malaysia, a provider of enterprise resource planning solutions, to form a joint venture that will ensure that transportation of goods, especially food and food products, complies with the halal requirements.