SiCepat is Considered to Become the Seventh Indonesian Unicorn
CB Insights report entitled ‘The Complete List of Unicorn Companies’ shows, J&T Express is included in the list of sixth unicorns in Indonesia. Another logistics startup that has the potential to become a unicorn is SiCepat.
Co-Founder and Managing Partner at Ideosource and Gayo Capital Edward Ismawan Chamdani said, SiCepat has the potential to have a valuation of more than US$ 1 billion or has the status of a unicorn, after being injected with Tokopedia’s capital.
“The company will immediately get a traffic preference, which is very large,” said Edward, Wednesday (14/4).
Last year, DealStreetAsia reported that Tokopedia made a strategic investment in SiCepat to improve its delivery service capabilities. If this is true, Edward considers that the logistics startup’s financial strength has accelerated its status change to become a unicorn.
March Last Year Received Series B Funding
In March, SiCepat also completed its Series B funding of US$ 170 million or around IDR 2.44 trillion. Participating investors are Falcon House Partners, Kejora Capital, German development financial institution DEG, Asia Based Insurer, MDI Ventures, Indies Capital, Temasek Holdings subsidiaries namely Pavilion Capital, Tri Hill, and Daiwa Securities.
On the one hand, the logistics sector is getting bigger during the corona pandemic. CEO of Mandiri Capital Indonesia Eddi Danusaputro said startup companies in this sector are growing rapidly, driven by Indonesia’s geographical conditions.
“Logistics supports economic activity,” said Eddi. According to Ken Research’s report, Indonesia’s logistics market revenue trend will continue to increase until 2024.
Logistics revenue in the country is predicted to reach US$ 220.9 billion last year and reach US$ 300.3 billion in 2024.
This income includes freight, warehousing, courier, express, and parcels. Then, there is the added value of services and cold chain logistics segments. The logistics sector was also boosted by the growth of e-commerce during the Covid-19 pandemic.
“People reduce physical gatherings and rely on delivery via logistics for the food, business and other sectors,” said Eddi.
McKinsey estimates that 1.6 billion packages of e-commerce transactions will be sent per year, by 2022. It could increase again, given that the services are increasingly in demand during the pandemic.
Facebook and Bain & Company also estimate that the value of online shopping transactions in Indonesia is nearly US$ 72 billion or around IDR 1,047.6 trillion in 2025. It’s a jump compared to the initial projection of US$ 48 billion.
The Success Of Sicepat Ekspress Makes The Company Want To Be More Advanced In 2021
Success with good performance in 2020 has spurred SiCepat Ekspres, a national shipping company to better seize the national logistics market this year.
As is known, throughout 2020 SiCepat Ekspres successfully recorded business projections of up to 105% and growth of up to 110%.
As a new growing company, in 2020 SiCepat has successfully delivered more than 1.4 million packages per day with more than 97% service level for 1-day delivery to their destination.
For this positive performance, SiCepat Ekspres was rewarded with the WOW Brand 2021 award from MarkPlus, Inc.
As the Bronze Champion of Indonesia WOW Brand 2021 for the Transportation and Logistic – Courier Service category, this strengthens its position as a courier and delivery company in the minds of the public.
Related to this, The Kim Hai, Chief Executive Officer of SiCepat Ekspres said, “We always try to continue to apply modern marketing concepts that focus on sustainability. Especially in the current pandemic recovery period, of course, an effective and efficient marketing strategy is needed to generate business. “
He continued, this award is a moment for SiCepat Ekspres to further strengthen its position as a courier and delivery service company that is loved by the people of Indonesia.
Moreover, the e-commerce business ecosystem, which is now increasingly showing positive progress, is a supporting factor for SiCepat to continue to develop its wings.