Shippit, an Australian logistics technology platform, announced Tuesday the acquisition of a Singapore-based start-up, Luwjistik, the creator of a unified API that allows freight forwarders, courier’s and third party logistics companies to connect into network partners globally, in an AUD$18 million ($11.24 million) deal.

Shippit said in a statement through the acquisition, Shippit – which has been operating in Southeast Asia since 2020 – will double-down on growth in the region, including in its enterprise customers, by leveraging Luwjistik’s technology, local relationships and expertise.

Luwjistik has agreements with 100+ network partners across 18 countries, with a deep focus on Southeast Asia.

The deal will also see Shippit’s Co-founder and Co-Chief Executive Officer William On, relocate to Singapore to head up the Southeast Asian operation, and a team of 50.

The acquisition is Shippit’s second in 2022, having announced in March the acquisition of leading Australian last mile technology firm, Premonition.

In May, Shippit completed an AUD$65 million ($48 million) Series B2 capital raise to power the company’s growth, with a particular focus on the Southeast Asian Market.

“Today is an incredibly exciting day for Shippit and the realisation of a vision we’ve held since starting out in 2014. Adding Luwjistik to the Shippit group bolsters our team with Co-founders who possess significant industry knowledge and relationships that will transform our go-to-market strategy in the region,” said On.

According to him, this strategic move will expand the group;s growing and scaling business through product localisation and new market entry beyond Singapore.

“By offering multi-partner shipping from Luwjistik’s carrier partners, it’ll also enable us to diversify our offering; enabling small-to-medium sized logistics providers to expand their reach by accessing Luwjistik network partners. It’ll also enable us to explore and execute key partnerships in the region,

“Southeast Asia is a burgeoning eCommerce market and we’re incredibly excited to expand our presence in Singapore, and across the region. Together with Luwjistik, we will continue to prioritise technology that tackles the challenges of rapid eCommerce growth across the online retail ecosystem,” he added.

Luwjistik counts carriers such as Ninja Van, J&T Express, and JNE Express as network partners on its platform and provides solutions for major logistics players in the region including POS Malaysia, Lion Parcel and Gushcloud’s social commerce arm, Summer International.

“This is a hugely significant moment for Luwjistik, a company which is barely a year old, to be recognised for its vision and efforts in elevating the the logistics and retail sectors in Southeast Asia. We started Luwjistik because we saw technology as the solution to many of the industry’s longer-term challenges,

“It is a very similar mission that powers Shippit; using technology and digital transformation to provide faster, more efficient, and secure solutions that bring the entire supply chain closer together. There has never been a more transformative, and exciting period for the logistics sector, and together with Shippit we’re able to make our collective vision a reality,” said Syed Ali Ridha Madihid, Co-Founder and Chief Executive Officer at Luwjistik.

“Together with Shippit, we will be able to offer the full spectrum of products and solutions to all clients; from domestic to cross-border, and from end-to-end to modular services. I strongly believe that by combining our strengths, we can continuously innovate and offer the most impactful, reliable and relevant solutions to a fast-changing, dynamic market,

“We expect the strong growth of eCommerce in Southeast Asia will continue, so Shippit and Luwjistik coming together is very timely. As a group, we’re now able to offer a one stop platform for not only enterprises but the growing SMEs segments – especially in Indonesia, Malaysia, Philippines and Thailand. It’s an incredibly exciting period for both Shippit and Luwjistik across SEA in 2023, and beyond,” he added.

Over 3,500+ retailers of all sizes use the Shippit platform to power their deliveries. In FY22, over 40 million deliveries were booked through the Shippit platform, with $5.5bn worth of eCommerce fulfilled through the platform since Shippit’s launch in 2014.

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