In order to expand its AI-powered transportation platform throughout Asia, Singapore-based SWAT Mobility has raised an additional US $3.8 million in funding. According to CEO Jarrold Ong’s confirmation to the media, this brings the total capital raised in this round to US $7.2 million.
A mixed prognosis for Asia’s tech-enabled logistics and transportation sectors accompanies the fundraiser. While cutting markets and investing in new areas, Indian ride-hailing company Ola is aiming for an IPO, and Singapore-based NinjaVan is in trouble due to a fierce pricing war in logistics.
In contrast, SWAT Mobility uses a different model. For customers in the mobility sector, such as government organizations and transport operators, the company provides AI-powered solutions, mainly for the purpose of creating effective travel routes.
It has also developed an on-demand transportation system, a delivery system for logistics companies, and a data analysis system for bus boarding and alighting since its founding in 2015. It has operations in Singapore, Thailand, and the Philippines in addition to its largest market, Japan, where at least 50 businesses and local governments make use of its models.
NEC & Translink Orchestrating Future Fund, a venture capital fund run by Japan’s NEC Corporation and US-based Translink Capital, is one of the investors in the new fundraising. Other participants include Chubu Electric Power, a utility company in Japan, and NX Global Innovation Fund, a fund from the logistics services company Nippon Express, based in Tokyo.
SWAT Mobility has expanded its sales and customer service departments in Japan and established an engineering team there to bolster its momentum. According to Ong, the additional funds will support the company’s research and development of services that are logistics-focused.
The startup said in a statement that it expects the industry in Japan to see increased demand because the nation is expected to experience a labour shortage due to tightened labour regulations for truck drivers starting in April 2024.
Although it’s unclear what the current plan is, SWAT Mobility was reportedly considering an IPO in Japan in 2021. The company wants to turn a profit in the next year or two, according to CEO Ong.
