Logistics startup Locad has raised $11 million in a Series A funding round as it looks to expand its supply chain platform that allows modern consumer brands in Asia-Pacific to automatically store, pack, ship and track orders in a distributed, end-to-end supply chain as-a-service.
Reefknot Investments, a fund anchored by Temasek and logistics firm Kuehne & Nagel led the Series A round.
The round also saw participation from existing investors Sequoia India and Southeast Asia’s Surge, Febe Ventures, Antler, as well as new investors Access Ventures, JG Summit, and WTI.
Locad provides a cloud supply chain for brands to store, pack, ship, and track orders for ecommerce and omnichannel retail through a tech platform connecting a network of warehouses and shipping partners.
The startup plans to use the raised capital towards network expansion, product development, and hiring talent across Asia-Pacific.
“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.” says Locad CEO & Co-founder Constantin Robertz.
“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,” Constantin adds.
Commenting on the investment, Ervin Lim, Vice President of Reefknot Investments, said, “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.”
Locad said its 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” added Constantin Robertz.
The startup claims it has served over 200 brands across Singapore, the Philippines, Thailand, Hong Kong, and Australia, and shipped more than 2 million orders while maintaining a 99% same-day order fulfillment rate.