Aiming Southeast Asian Market, Logistics Startup Waresix Acquires Trukita
A logistics startup, Waresix acquired a similar corporation, Trukita. This startup is targeting to be able to create the largest logistics network in Southeast Asia. Waresix obtained funding last September from PT Elang Mahkota Teknologi Tbk (Emtek), EV Growth, and Jungle Venture. SoftBank Ventures Asia, Pavilion Capital, and Redbadge Pacific participated.
Three months later, Waresix began to accelerate its business by acquiring a technology startup that offers first-mile freight forwarding and trucking services, Trukita. This complements Waresix’s mid-mile focused business.
With this, the company now offers end-to-end logistics services that cater to all aspects of the supply chain including trucking, warehouse, multimodal transportation and vendor management. This startup is eyeing the market value of Indonesian port and sea logistics, which is predicted to be US$ 60 billion.
“This acquisition is in line with our strategy to complement our capabilities in mid mile logistics services,” said Co-founder and CEO of Waresix Andree Susanto, as quoted in a press release, Thursday (17/12).
In the context of business to business (B2B) logistics, first-mile shipping usually includes the transport of goods from ports and warehouses. Middle-mile distribution allows delivery between warehouses or directly to distributors.
Meanwhile, the last-mile is the last step in the supply chain. Products are shipped from distributors to retailers. Waresix will focus on mid-mile services connecting shippers and businesses to trucking and warehouse services. While Trukita operates a marketplace platform for goods and truck transportation services.
Trukita Connects Businesses with Truck Owners
The company also provides real-time tracking services, business analysis, online payments and supply chain optimization. “This strategy allows us to combine our expertise and corporate network to expand our range of services. In addition, it offers a more comprehensive range of services to customers,” said Andree.
The Co-Founder and CEO of Trukita Ady Bangun said that the collaboration with Waresix made the service more holistic. He is optimistic that the two companies can overcome supply chain efficiency problems in Indonesia, such as uncertainty in shipping and high costs.
This is because Indonesia is an archipelago country. Goods cannot be transported using only trucks or other land transportation modes. Multimodal transportation, which consists of land, sea, and warehousing solutions to reach remote islands.
Therefore, Waresix acquired Trukita to be able to solve this problem with a one-stop solution. Currently, Waresix operates in more than 100 cities in Indonesia and manages more than 40 thousand trucks and 375 warehouses.
The startup also serves more than 250 corporations from various business fields including commodities, Fast Moving Consumer Good (FMCG), industrial equipment, infrastructure and retail. Some of its clients are Unilever, Indofood, Siam Cement Group, Wings, and JD.ID.
Received the Best Logistics Technology Platform Award
Waresix, a technology platform startup for logistics, recently won the award for the ‘2020 Indonesia Emerging Logistic Technology Platform’ at the Frost & Sullivan Best Practices Awards. The Frost & Sullivan Best Practices Awards are awards given to companies that are considered best in class in their respective industries.
This award is given after conducting in-depth interviews, analysis and research by reviewing several aspects such as revenue, market share, capabilities and the company’s contribution to the overall industry.
Waresix is considered to have the best performance based on predetermined benchmarks. This company is able to provide solutions to unmet needs in the logistics industry, provide the best performance and customer service experience, apply business best practices in the industry, and are able to excel in the existing competition.
Andree also said that this award was an affirmation of Waresix’s performance in the logistics technology industry. He added that by utilizing effective logistics technology, his party wants to contribute in reducing logistics costs, as well as increasing the efficiency and transparency of the logistics process as a whole.