Teleport, an AirAsia subsidiary acquired a stake in Indonesia’s Kargo Technologies
Teleport, Malaysia’s budget airline AirAsia’s logistics division, has invested an unknown sum in Indonesia’s B2B trucking marketplace Kargo Technologies.
The agreement links Kargo’s trucking network to Teleport’s infrastructure, expanding the latter’s mid-mile capabilities beyond air freight to include 24-hour delivery across the archipelago’s multi-modal routes.
Teleport’s internally produced sources were used to fund the fundraising, which was done in the form of convertible notes, according to the release.
Teleport will be able to combine air connectivity with ground transportation capabilities, deploying new technology and growing its network in the Southeast Asian logistics sector, thanks to its cooperation with Kargo.
Kargo plans to use Teleport’s regional presence, large network, and rich data to expand its end-to-end freight coverage across the country.
“The strategic partnership with Teleport will help us become multi-modal, expanding in the value chain horizontally,” said, Tiger Fang, Co-Founder and CEO of Kargo. “We expect the partnership to mutually benefit both parties by growing each other’s presence in Southeast Asia in 2022 as we look to solve the evergreen logistics issue in the region.”
In Malaysia, Thailand, Indonesia, the Philippines, India, Singapore, and China, Teleport has a presence.
Kargo (called “Uber for logistics”) was founded in 2018 by former Uber employee Tiger Fang and IT veteran Yodi Aditya. Its marketplace of over 75,000 cars lets shippers, carriers, and truckers connect, exchange, and track cargo.
The company provides product suites that can be integrated into enterprises and help supply chains run more transparently and efficiently. Its workflow features also make it possible to price, track, and bill freight using technology.
Tenaya Capital, a Silicon Valley-based Canva investor, led the startup’s $31 million Series A financing in 2020. Amatil X, Coca-venture Cola’s capital arm, is also a strategic investor in Kargo.
Kargo claims to have increased its volume by 15-fold in the last year, attracting major clients such as Unilever, Coca-Cola, Shopee, and Maersk, among others.
The Indonesian freight and logistics industry was valued at US $81.30 billion in 2020, according to Mordor Intelligence, and is expected to increase to US $138.04 billion by 2026, reflecting a 9.22% annual growth rate.
