Logistics startup gets $11 million funding

January 29, 2023 | 12:00am

MANILA, Philippines — Singapore-based Reefknot Investments has invested $11 million in a Filipino startup that seeks to streamline logistics solutions for e-commerce players across the Asia-Pacific region.

Reefknot, a venture capital for high-performing enterprises in Southeast Asia, wants to improve its portfolio by expanding regional investments to help local startups become global.

In line with this, Reefknot led the Series A funding for Locad, together with Access Ventures, JG Summit, Sequoia Surge, Febe Ventures, Hustle Fund and Foxmont.

Reefknot invested $11 million in Locad to strengthen its logistics operations by pushing it to build an extensive supply chain network in Asia and the Pacific.

Locad serves as a logistics engine working with e-commerce brands in growing their reach in the region. It deploys a cloud channel to automatically store, pack, ship and track orders.

The firm organizes end-to-end delivery through its network of shippers and warehouses across the Philippines, Australia, Hong Kong, Singapore and Thailand.

Prior to the investment, Locad has delivered more than two million orders in the region and has maintained a 99 percent same day fulfillment rate.

Locad hopes that its cloud platform would decrease inventory errors, hasten shipping processes and minimize logistics cost to support e-commerce merchants expand their reach.

Reefknot vice president Ervin Lim said the venture capital chose to invest in Locad to bolster its capital, as it broadens its service in the $170 billion e-commerce industry in Southeast Asia and Australia.

Lim said that Reefknot supports Locad in its move to keep an asset-light business by allocating its inventory across warehouses in the region.

This allows Locad to ensure that its inventory is kept close to customers, resulting in cost and time savings for suppliers and buyers.

“The Asia and the Pacific, including the Philippines, emerged as an investment region in part to macroeconomic tailwinds and intrinsic understanding of the different markets. Given our global backing and expertise in helping startups expand services and coverage in the region, Reefknot is committed to partnering with more fast-growing supply chain and logistics startups,” Lim said.

The Department of Trade and Industry (DTI) plans to launch the National Logistics Strategy within the year to guide logistics players on what they can contribute further in growing the economy.

For Reefknot, Lim said it would explore new opportunities in the Philippines, committing that investments will be made available for local startups transforming the supply chain.