RaRa Delivery Raises US$ 3.25 Million in Funding
RaRa Delivery, an instant delivery startup in Indonesia just announced a US$ 3.25 million of funding led by Surge from India’s Sequoia Capital and East Ventures from Indonesia.
This startup claimed to be the only last-mile logistics company in Southeast Asia that is revolutionizing one to three-hour delivery for e-commerce through their data-driven approach and proprietary technology. RaRa Delivery is committed to converting all shipments in Indonesia into instant and same-day deliveries.
Instant gratification has become the norm across consumer categories as people’s online shopping habits change, making super-fast delivery a necessity rather than a luxury. Consumer interest for fast delivery has increased and consumers are now willing to pay more for it.
“The company has a mission to change all deliveries in Indonesia to be instant and same day,” said Founder & CEO, RaRa Delivery Karan Bhardwaj in a written statement Thursday (18/8/2021).
People Are Willing to Pay a High Price for Instant Delivery
Founder & CEO, RaRa Delivery, Karan Bhardwaj, said, “In an era of instant gratification for things like today, Rara Delivery is revolutionizing logistics by enabling delivery within hours to anyone anywhere in Indonesia.”
“While express delivery has grown rapidly in sectors such as groceries and healthcare, we see a unique opportunity to increase this offering across all categories due to the maturity of Indonesia’s e-commerce sector,” he explained.
In Indonesia, consumer appetite for fast delivery has increased. The data shows that the same-day delivery market is estimated to grow by 30%, with a total of 4.5 million packages per day in 2023.
The premium logistics costs for same-day delivery services are projected to increase to IDR 65 trillion in 2023, up from IDR 4.4 trillion in 2018.
“The challenge of e-commerce in a large and densely populated country like Indonesia is how to build technology and infrastructure to solve the problem of fast and scalable delivery at the most optimal cost,” he said.
He said RaRa Delivery seeks to realize fast delivery by leveraging different operating models and data batching technology in real time.
Rara Delivery Develops Instant Delivery Technology
While other companies with express logistics infrastructure focus on point-to-point delivery, RaRa Delivery has developed a proprietary real-time clustering technology to perform ‘many point-to-many points’ deliveries.
This way, the shipping costs can be reduced optimally. At the same time, couriers can also make more money in less time and less distance.
“While express delivery has grown rapidly in sectors such as groceries and healthcare, we see a unique opportunity to increase this offering across all categories, as customer expectations grow as Indonesia’s e-commerce sector matures,” said Bhardwaj, in a release. press, Wednesday (18/8).
Bhardwaj added, through a smart batching system and courier team who are highly dedicated and committed to ensuring smooth delivery.
“Through the Smart Batching System and dedicated courier team, our vision is to create an ecosystem that allows e-commerce marketplaces and sellers to provide premium experiences to their consumers, starting from Indonesia,” said Bhardwaj.
RaRa Delivery, which was founded in Singapore in July 2019, has served wholesale players such as Sayurbox and health technology company Alodokter as key customers.
Other customers who use RaRa Delivery are Blibli, Kopi Kenangan, Merchant Grab, and other big brands. The company has increased its daily order volume by 15 times over the past year
RaRa Delivery is also one of the few businesses in Indonesia that reconcile cash on delivery (COD) in real-time through one online platform.
“RaRa Delivery has been our trusted delivery partner since the launch of Story Roti in November 2020. Currently, collaboration with RaRa allows us to provide quality breads to our customers through Kopi Kenangan outlets in Jabodetabek,” said VP Kopi Kenangan, Jack Siah.