Indonesian logistics startup Kargo bags $31m, sets up Covid-19 relief fund
Original Post by Tech in Asia
Indonesian freight logistics marketplace Kargo Technologies said it has raised US$31 million in a series A round led by Silicon Valley’s Tenaya Capital to scale its business.
Other participating investors include Sequoia India and Southeast Asia, Intudo Ventures, Coca-Cola Amatil, AC Ventures, Alter Global, and Mirae Asset Venture Investment, according to a statement. Kargo has also secured debt financing from undisclosed regional banks and financial institutions as part of the round.
The new funding comes as the startup launches initiatives to help companies in Indonesia fight the Covid-19 pandemic.
Kargo said its employees will be seeding a US$1 million logistics relief fund for truckers moving essential supplies. Its co-founders and leadership team will pour up to 75% of their salaries into the fund, while CEO Tiger Fang will contribute 100% of his annual pay. Kargo has opened the fund to anyone willing to donate.
In addition, the startup has also partnered with charitable organizations to deliver meals and essential medical supplies to healthcare workers and patients across hospitals in Jakarta.
Kargo also said it has been taking extra precautions to keep drivers safe during the outbreak. For one, it has implemented an electronic proof-of-delivery system on its platform to limit physical contact. It has also been disinfecting and stocking up pit stops on its routes with essential supplies.
“Whether it’s keeping retail shelves stocked with minimal human contact or making ecommerce orders more fluid across the nation, our team believes we can help solve this problem,” said Yodi Aditya, Kargo’s chief technology officer.
Fang and Aditya founded Kargo in 2018. Prior to Kargo, Fang had held key positions at Uber, Rocket Internet, and Lazada. Meanwhile, Aditya has worked with aircraft route optimization, enterprise software, and real-time payment technology.
Last year, Kargo raised US$7.6 million in a seed round led by Sequoia Capital India. Intudo Ventures, Innoven Capital, and 10100 Fund, created by Uber founder and ex-CEO Travis Kalanick, also participated in the fundraise.