JANUARY 26 2023, PHILIPPINES – Reefknot Investments (Reefknot), an established global VC that invests in high-performing, transformative startups in Southeast Asia, recently led Filipino eCommerce logistics company Locad’s US$11M Series A funding. The investment into one of the leading and fastest-growing supply chain and technology startups from the Philippines deepens Reefknot’s commitment to building regional partnerships and helping startups expand regionally.
In the Philippines, the demand for supply and logistics services has been accelerated by the rise of online retailers. In line with the government’s efforts to digitize the economy, the Department of Trade and Industry (DTI) reported that the number of online vendors increased from 1,700 in March 2020 to 93,318 in January 2021, highlighting the country’s need for eCommerce fulfillment partners that have wider local and regional coverage.
Locad is an eCommerce fulfillment partner that offers logistics solutions to help retailers sync inventory across online distribution channels and organize end-to-end order fulfillment through a reliable network of warehouses and shipping partners in Southeast Asia. Locad currently operates in Singapore, the Philippines, Australia, Thailand, and Hong Kong, and has shipped more than 2M orders while maintaining a 99 % same-day order fulfillment rate.
The recent funding will enable Locad to strengthen its logistics engine by building the most extensive and interconnected supply chain network across the Asia-Pacific through its technology platform. This move will provide eCommerce companies, as well as online retailers with logistics capabilities, to tackle the $170B eCommerce markets across Southeast Asia and Australia.
“We are excited to partner with Locad to bring holistic end-to-end eCommerce logistics solutions to more companies across the Asia-Pacific,” shared Ervin Lim, Vice President of Reefknot Investments. “Locad’s unique operating model of intelligently allocating inventory across distributed warehouses, with an asset light model, ensures that inventory is kept close to the customers, thereby enabling significant cost and time savings for both brand and consumer.”
DTI has recently expressed the urgency of reducing logistics costs in the country with the launch of National Logistics Strategy in Q1 2023 for a more resilient and inclusive economic recovery, highlighting the importance of investing in the growth of supply chain companies in the market that will support the government’s plans to improve the industry.
“The Asia-Pacific, including the Philippines, emerged as an investment region in part to macroeconomic tailwinds and intrinsic understanding of the different markets. Given our global backing and expertise in helping startups expand services and coverage in the region, Reefknot is committed to partnering with more fast-growing supply chain and logistics startups,” added Lim.
Despite its status as an established global VC, Reefknot continues to set its sights on transforming and adding value to Southeast Asia’s evolving supply chain landscape. Following its recent participation in Altana Technology’s US$100M Series B funding, Reefknot is doubling down on more partnerships in Asia, which includes Locad and earlier investments in Altana, Pickupp, Roambee, and Secondmind.