Mekong-focused logistics firm secures pre-series A funding for regional expansion

Karzo founder and CEO Alex Wicks / Photo credit: Karzo’s LinkedIn page

Karzo, a logistics startup focused on the Mekong region, has bagged new funds from a follow up pre-series A funding round led by Orbit Startups, Cocoon Capital, and NP Consulting. The startup did not disclose the total amount raised.

The fresh capital comes as Karzo prepares for a series A funding round, which the startup had previously planned for 2021.

Karzo, which calls itself an “asset-light, mid-mile” logistics company, made headway amid the pandemic as it offered an online marketplace for truck operators and third-party logistics companies.

The platform lets truckers connect with suppliers in need of logistics and distribution services. Karzo then takes a commission for every transaction made.

It counts major FMCG and multinational firms such as Maersk Line and Chang Beer as clients.

Karzo founder and CEO Alex Wicks said the new funding will allow the company to increase its market share in the Mekong region. It currently operates in Myanmar and Thailand.

To help it capture more market share, the startup is developing KarzApp, a mobile app that offers truckers a digital platform to manage freight requests.

The app aims to partner with financial institutions like insurance firms and dealerships, which Karzo said could generate extra revenue streams for trucking companies.

The company’s asset-light strategy comes at an opportune time – Southeast Asia’s freight and logistics market is set to reach US$475 billion by 2029, according to Mordor Intelligence.

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