Kargo Tech Launches KargoNexus, Integrated Logistics Management Solution
Based on data from the Indonesian Logistics Association (ALI) in 2021, the flow of goods shipments grew by up to 40% during the pandemic. During this period, the pharmaceutical, medical device, and consumer goods industries recorded the largest contribution to shipments.
However, digitalization also brings complexity to the management of logistics data and fast delivery of goods on a large scale during the pandemic. However, there are still many of them who carry out logistics activities manually.
Seeing this situation, KargoNexus, which is a product of Kargo Tech, previously known as Kargo Technologies, is here as a logistics management solution.
The platform wants to make it easier for companies to digitize logistics and supply chain systems in the company. One of the challenges that are still being faced today is the mindset of business actors who are often still quite closed to changes in the way supply chain operations work digitally.
“KargoNexus has a passion to stay close to all its users from the sender, vendor, and driver layer, with programs that have a local approach,” said Head of Product & Enterprise Solutions Kargo Tech Brian Aditya Tedjasaputra. KargoNexus has a hybrid subscription and cross-selling business model and monetization strategy.
As one of the platforms in the Kargo Technologies ecosystem, KargoNexus is considered to be ideal for businesses to get more value, both from meeting the needs of the trucking marketplace, as well as all logistics and smart transportation features in the KargoNexussoftware.
In short, KargoNexus wants to help companies in managing holistic logistics management and integrated company supply chains without boundaries, monitoring shipments and the ability to see data performance of logistics partners centrally.
“Through this solution, we want to help companies achieve 100% of their productivity, from supply chain to analyzing logistics transactions in real-time so they can accelerate their business and win the competition,” said Brian.
Tech Cargo Plan
Until now, Kargo Tech has served more than 13 thousand shippers throughout Indonesia. In general, their services are made to bring together shippers and vendors easily and quickly.
Kargo Tech is committed to logistics transparency, best service quality, and increasing revenue for vendors or asset owners. Until this year, the main composition of clients from Kargo Tech was in the FMCG, CPG, Manufacturing, Agri and Aquatech, Heavy Equipment, and Raw Materials industries.
“In 2022, Kargo Tech will continue to focus on developing its user base in key industries that it has successfully achieved in 2021, and also has a target to target the B2B market segment in other major vertical industries, such as Pharmaceutical, Automotive, and General Goods,”said Brian.
Another target that Kargo Tech wants to achieve in 2022 is intensive expansion to the islands of Sumatra, Bali and Sulawesi, as well as pursuing the growth of transactions and active users on its platform by double digits per quarter.
At the beginning of 2020, Kargo Tech had pocketed series A funding of IDR 548 billion. The investment is led by Silicon Valley-based Tenaya Capital. The participating investor groups are Sequoia India, Intudo Ventures, Amatil X, Agaeti Convergence Ventures, Alter Global, and Mirae Asset Venture Investment.
Logistics Business Throughout 2021
The pandemic is a blessing in itself for the logistics industry. In addition to the needs that continue to increase along with the development of e-commerce-based businesses, there are still many development areas that can be explored. Currently, the logistics sector in Indonesia is estimated to be worth $275 billion, growing at ~16% CAGR between 2015-2020.
Seeing these opportunities, the trend of funding to logistics startups also continues to grow. This is a good signal, because the investor hypothesis also validates the potential for business development in this landscape.
Compared to the last three years, the funding that occurred this year increased drastically in value. In 2021 at least $369.3 million was disbursed by domestic and foreign investors for local logistics startups.
Besides Kargo Tech, in Indonesia several other players focus on providing logistics management services, including McEasy, TranTrack, Wetruck, Shipper, Clodeo, etc.