ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
DealStreetAsia

Indonesia delivery startup SiCepat raises $170m

Company emerges as major end-to-end logistics player with 1.4m orders daily

Motorcycles are often used for package deliveries in Indonesia.   © Reuters

JAKARTA -- Indonesian last-mile delivery startup SiCepat Ekspres has closed a $170 million Series B funding round backed by Falcon House Partners, Pavilion Capital, MDI Ventures and others.

New investors include German development institution DEG, Trihill Capital and Daiwa Securities, while existing backers Kejora Capital and Indies Capital also contributed, according to a Sicepat statement.

"This financing round is designed to further fortify SiCepat's position as the leading end-to-end logistics service provider in the Indonesian market and potentially to explore expansion to other markets in Southeast Asia," said The Kim Hai, founder and CEO of Sicepat's parent company Onstar Express.

SiCepat says the $170 million round counts as the largest Series B in Southeast Asia. While the company did not disclose current valuation, SiCepat described itself as a "soonicorn," suggesting that it is inching closer to the $1 billion unicorn mark.

The startup's growth can largely be attributed to Kejora Ventures. The Indonesian venture capital company seeded SiCepat with $3.5 million in 2017 through its Kejora-InterVest Star Growth Fund in a $50 million Series A round in 2019, in which the investment arm of Indonesia petrochemicals major Barito Pacific participated.

"Indonesian e-commerce market stood at $32 billion in 2020 with a projected 5-year [compound annual growth rate] of 21% to become a $82 billion industry by 2025. We believe that SiCepat is ideally positioned to serve customers, from e-commerce giants to uprising social commerce players which contribute an estimated 25% to the total digital commerce economy," said Sebastian Togelang, a SiCepat director who is also a managing partner at Kejora Capital.

SiCepat was founded in 2014 as a last-mile delivery company for online merchants in Indonesia. Since then, it has expanded its service to some of the largest e-commerce platforms in Indonesia. Recently, the company has consolidated its key logistics assets across warehousing, fulfillment and e-distribution.

According to DealStreetAsia sources, Onstar Express has built a separate warehousing company called Haistar, which was founded and led by former SiCepat chief commercial officer Donny Wardhana. While Haistar runs its own business, the company also enables SiCepat to offer end-to-end logistic services to its customers.

SiCepat declined to comment on its affiliation with Haistar, while Haistar did not respond to DealStreetAsia's query.

At the start of the year, SiCepat diversified into the food delivery business after acquiring a 51% stake in DigiResto, a food ordering platform developed by Digital Maxima Kharism, a subsidiary of listed M Cash Integrasi.

SiCepat's logistics services, including last-mile delivery, warehousing, fulfillment and online distribution, pit it against other Indonesian players such as J&T Express and JNE in the last-mile segment and Waresix and Kargo Technologies in the middle-mile and warehousing space.

SiCepat says it is profitable and fulfilled more than 1.4 million orders daily 2020. It expects to enhance the customer experience and expand overseas.

For the original story from DealStreetAsia, click here.

DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more