The Singapore-based logistic engine, Locad has secured $11 million in a Series A fundraising round.
The startup assists eCommerce businesses in methodically storing, packing, shipping, and tracking products across Asia-Pacific.
Sequoia India and Southeast Asia’s Surge, Febe Ventures, Antler, new Access Ventures, JG Summit, and WTI were among the returning investors in the round. Reefknot Investments, a 50:50 joint venture between Temasek and global logistics company Kuehne & Nagel, also participated.
The funding will be used by Locad to create the biggest fulfillment network in the area. To expand in Southeast Asia and Australia, the company is building new warehouses, working with transport companies, and hiring staff from all around the region.
According to Locad CEO and Co-founder Constantin Robertz, “Our ultimate goal is to enable a frictionless movement of physical goods and data across the supply chain for any brand and merchant, enabling anyone to sell anywhere, on any sales channel, and deliver effortlessly.”
The supply chain and fulfillment infrastructure, Constantin continued, “is a key barrier to scaling the business for many brands as modern consumer brands are transforming to direct-to-consumer and omnichannel retail, and the bar is only rising further due to higher customer expectations for fast delivery, and the complexity driven by an increasing number of sales channels.”
The platform of Locad, which was founded by Shrey Jain, Jannis Dargel, and Constantin Robertz, syncs inventory with different online stores like Shopify, Lazada, Shopee, and TikTok Shop. Through a network of warehouses and shipping partners, it organizes end-to-end order fulfillment for B2C and B2B orders, from storage through delivery.
Brands and retailers benefit from a regionally distributed storage infrastructure as a result, allowing them to stock items close to customers and provide faster, more affordable delivery.
The business claims to have worked with more than 200 companies in Singapore, the Philippines, Thailand, Hong Kong, and Australia and to have shipped more than 2 million orders while maintaining a 99% same-day order fulfillment rate.
Constantin Robertz said, “Over the next five years, we expect to establish the greatest network of warehouses in the region, providing next-day delivery in Tier 1 to 3 cities throughout the region, and make this available to brands and merchants in one integrated platform.
Ervin Lim, Vice President of Reefknot Investments, states, “We are thrilled to work with Locad to deliver comprehensive end-to-end e-commerce logistics solutions to brands across the Asia Pacific.”
“Locad’s unique operational strategy of localizing warehouses into the cities ensures that inventory is kept close to the customers, offering considerable cost and time benefits for both brand and consumer,” Ervin Lim continued. “As consumers outside of Tier-1 cities can now receive their products 2-3 times faster at a quarter of the normal cost, we think that Locad’s logistics engine will encourage wider involvement in the digital economy.”
Image Credit: Locad