Coca-Cola’s VC arm invests in Indonesian logistics startup Kargo

Road logistics amounts to 16% of Indonesia’s gross domestic product, with around US$40 billion spent on trucking each year, Tiger Fang, CEO of Kargo Technologies, said.

To take on the growing opportunity, Fang’s startup today announced that it has secured an undisclosed amount of strategic investment from Amatil X, the venture capital arm of Coca-Cola Amatil Indonesia.

With the new investment, Kargo said it will address all Coca-Cola’s trucking needs, including digitizing its supply chain in Indonesia. It will also use part of the new funds to provide loads and cash flow to help its transporters survive the negative impact of the Covid-19 pandemic, the startup told Tech in Asia.

Kargo co-founder and CEO Tiger Fang (left) and chief technology officer Yodi Aditya / Photo credit: Kargo

Founded in 2018, Kargo integrates shippers and logistics providers in a marketplace. Through its website and mobile app, shippers, transporters, and truckers can connect and transact with each other and track shipments in real time. Transporters can access jobs directly from shippers, while the latter can find convenience in an online booking platform.

“The industry is highly fragmented, with 7 million trucks operating across 17,000 islands. Ninety percent of trucking companies have 100 trucks or less and 75% have 20 trucks or less,” said Fang.

Kargo can source loads for the backhaul, which means trucks can return with fewer empty loads, allowing businesses to maximize revenue and better distribute costs, the CEO added.

Last year, the company received US$7.6 million in a seed round led by Sequoia Capital India. The round also saw participation from investors such as the 10100 Fund by Uber founder Travis Kalanick, Intudo Ventures, and Innoven Capital, among others.