Singapore-based logistics firm Locad has on Monday announced it has raised an $11 million Series A funding round led by Reefknot Investments, a fund anchored by Temasek and logistics powerhouse Kuehne & Nagel.
The series A funding round also saw participation from returning investors Sequoia India and Southeast Asia’s Surge, Febe Ventures, Antler, as well as new investors Access Ventures, JG Summit, and WTI, Locad said in a statement.
Committed to democratizing the back-end supply chain of (e)-commerce, Locad will use the funding towards building the region’s largest fulfillment network.
The company is adding warehouses, partnering with transport operators, and hiring talent across the region to scale in Southeast Asia and Australia.
“Over the next 5 years, we expect to build the region’s largest network of warehouses, enabling next-day delivery in tier 1 to 3 cities across the region, and make this available to brands and merchants in one integrated platform,” said Locad Chief Executive Officer and Co-Founder Constantin Robertz.
“Ultimately, our goal is to enable a frictionless movement of physical goods and data across the supply chain for any brand and merchant, enabling anyone to sell anywhere, on any sales channel, and deliver seamlessly.”
“As modern consumer brands are transforming to direct-to-consumer and omnichannel retail, we have seen that the supply chain and fulfillment infrastructure is a key barrier to scaling the business for many brands, and the bar is only rising further, due to higher customer expectations for fast delivery, and the complexity driven by an increasing number of sales channels,” he added.
Locad is the logistics engine enabling e-commerce brands with a cloud supply chain to grow their omnichannel business and automatically store, pack, ship, and track orders across Asia-Pacific.
Locad’s tech platform syncs inventory across online channels and organizes end-to-end order fulfillment through their reliable network of warehouses and carriers across Singapore, the Philippines, Thailand, Hong Kong, and Australia, with more locations opening soon.
Through this, brands and merchants get a geographically distributed warehousing infrastructure that allows them to stock goods closer to customers, enabling faster delivery at lower cost.
To date, Locad has served over 200 brands across Singapore, the Philippines, Thailand, Hong Kong, and Australia, and shipped more than two million orders while maintaining a 99 percent same-day order fulfillment rate.
“We are excited to partner with Locad to bring holistic end-to-end e-commerce logistics solutions to brands across Asia Pacific.” said Ervin Lim, Vice President of Reefknot Investments.
“Locad’s unique operating model of localizing warehouses into the cities ensures that inventory is kept close to the customers thereby enabling significant cost and time savings for both brand and consumer,
“We believe that Locad’s logistics engine will spur greater participation in the digital economy as consumers outside of Tier-1 cities can now receive their orders 2-3x faster at a fraction of the usual cost,” he added.
Locad’s logistics engine provides the backbone to support the e-commerce and omnichannel growth of global consumer brands such as Havaianas, Reckitt Benckiser, and Emma Sleep in the region, while also expanding access to best-in-class logistics infrastructure to growing D2C brands and mid-market merchants.
“Success in omnichannel commerce for modern consumer brands requires a powerful supply chain orchestrated by software that seamlessly integrates the infrastructure of warehouses and shipping carriers. And that’s what we’re building here at Locad” said Constantin Robertz.
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