MANILA, Philippines – E-commerce logistics startup Locad raised $11 million in Series A funding and is said to be on track toward building Asia-Pacific’s “largest fulfillment network.”
In a briefing on Monday, January 16, Locad said the round was led by Reefknot Investments, a fund anchored by Temasek, Singapore’s sovereign wealth fund, and Swiss logistics company Kuehne & Nagel.
The Series A funding round also saw participation from returning investors Sequoia Capital India and Southeast Asia’s Surge, Febe Ventures, Antler, Foxmont, and Kaya Founders, as well as new investors Access Ventures and JG Digital Equity Ventures.
Locad chief executive officer and co-founder Constantin Robertz said the funding would be used for its network expansion in the Philippines and across Asia-Pacific, as well as product development.
It is looking at adding warehouses, partnering with transport operators, and hiring talent to scale in Southeast Asia and Australia.
“In the Philippines, we already have fulfillment centers in Luzon, Visayas, and Mindanao. Over the next five years, we expect to build the region’s largest network of warehouses enabling next-day delivery in Tier 1 to 3 cities across the region, and make this available to brands and merchants in one integrated platform,” Robertz said.
In July 2021, Locad was able to secure $4.9 million in a funding round led by Sequoia Capital India.
Launched in 2020, Locad synchronizes inventory and delivery services across channels like Shopify, Lazada, Shopee, and TikTok Shop. Locad said it has a 99% same-day order fulfillment rate.
The Philippine-born startup has served 200 brands across the Philippines and Asia-Pacific, and has so far completed 2 million transactions.
Robertz declined to answer questions on valuation, but noted that e-commerce is growing at a healthy pace from a plateau.
“Despite the markets reopening, which is a good thing, we still see robust demand in e-commerce in the Philippines and Southeast Asia and don’t see the market shrinking. It is a healthy level of growth coming from a large base,” he said. – Rappler.com