Indonesian trucking firm in talks with buyers after laying off over 50% of staff

Indonesian trucking startup Ritase is in the market to find a buyer after laying off more than 50% of its staff this year, according to multiple people privy to the development.

Photo credit: Ritase

One of the sources said that Ritase has been in talks with several logistics companies and is currently in advanced conversations with fellow delivery startup Shipper.

Ritase runs a marketplace business that connects shippers and transporters. It offers a SaaS platform for vendors and customers that has features like real-time shipment tracking, route optimization, and digitized paperwork. It also operates an invoice financing business that help its trucking partners tackle problems related to company cash flow.

It is understood that Shipper, which last year raised a series B round of US$63 million, is keen to acquire Ritase’s financing business for US$1 million.

When contacted by Tech in Asia, Ritase did not specifically comment on the said developments. Instead, the company confirmed that it has stopped its marketplace services but added that the development did not mean that it will discontinue its digital product.

A Shipper spokesperson, meanwhile, said the company is currently unable to provide information, considering that there’s still no agreement reached.

Brutal, but fair

Five-year-old Ritase last announced a funding round in 2019, when it raised US$8.5 million in a series A round led by Golden Gate Ventures and joined by Jafco Asia and ZWC Partners.

Before that, the trucking startup secured a total of US$4.4 million in seed and pre-series A funding from Insignia Venture Partners, Beenext, Skystar Capital, and Mitsubishi, among other investors.

Ritase said it had facilitated tens of thousands of shipments per month and signed up 500 small and medium-sized transportation companies with more than 7,500 individual trucks and 7,000 drivers. It counts internationally renowned brands like Nestlé, Unilever, Japfa, and Lotte as some of its corporate clients.

Though the trucking startup had managed to survive the pandemic-induced turbulence, it is understood that the company is running out of runway to fully continue its operations.

Multiple ex-employees Tech in Asia spoke to confirmed that more than half of Ritase’s team had been let go this year over two waves of mass layoffs.

One of the sources, however, said that Ritase had been “fair” in its downsizing exercise, as affected employees were given enough prior notice and compensation regarding the layoff.

Sources also shared that the company had raised a loan of around US$700,000 from existing investors earlier this year, which was seen as a bridge toward a much-needed new equity round. However, the round didn’t materialize, prompting the company to explore M&A opportunities.