Indonesia: Sembrani Nusantara Fund (SNF), a fund operated by Indonesian corporate VC firm BRI Ventures, has led an undisclosed Series A investment Andalin, a local startup providing cross-border shipping solutions.
The round is SNF’s third investment since launching in June 2020. Last December, it announced back-to-back investments into Indonesian drink brand Haus! and local direct-to-consumer shoe startup Brodo.
The fresh funds will go towards establishing freight consolidation infrastructure and expanding Andalin’s branch offices in the international port cities of Semarang, Surabaya, Medan, and Makassar. The company will also seek to launch operations in Japan, Thailand, China, Vietnam, and South Korea.
Established in 2016, Andalin provides digital cross-border shipping solutions in Indonesia to help local micro, small, and medium enterprises (MSMEs) simplify their import-export processes — from freight arrangements to customs clearance and everything in between.
Despite the economic impacts of COVID-19, Andalin claims it saw demand for its services spike in 2020, with shipment volume increasing by roughly 5x and average revenue per client rising by 450 percent year on year.
The company claimed that it facilitated shipments of goods worth US$20 million in 2020 and was close to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) positive by the year-end. As it seeks to increase its gross merchandise value to US$100 million, the company said it is on track to raise another round of funding by the end of 2021.
“We see an opportunity in digitizing first-mile logistics, simplifying the often convoluted and opaque sourcing process for MSMEs while reducing cost barriers. If all goes well, this will encourage them to undertake more import-export activities,” said Rifki Pratomo, CEO of Andalin. “Andalin will increase the capacity and quality of export-oriented products to and from Indonesia, and hopefully reduce the trade deficit.”