Air Asia Subsidiary Distributes Funding To Kargo Technologies Marketplace

JAKARTA - Kargo Technologies, a logistics marketplace in Indonesia, received funding in the form of convertible notes from Teleport, a logistics subsidiary of the AirAsia Group.

This funding will help Kargo's ability to provide integrated logistics solutions in Indonesia. The partnership with Teleport opens up the opportunity to combine air connectivity with Cargo trucking capabilities on the ground, leveraging strong technology and networks.

The Indonesian Logistics Association (ALI) in its report - "Outlook of Supply Chain and Logistics Indonesia", predicts that the logistics industry will experience double-digit growth in 2022. The value of this industry is estimated to reach 156.1 billion US dollars in 2023, provided there is a steady increase. significant progress in the process of utilizing technology and networks in the logistics industry.

Kargo answers the challenges faced by the logistics industry in the supply chain process with comprehensive solutions combined with the latest data and technology. Businesses of all sizes can now ship their goods to more places across Indonesia and Southeast Asia in less than 24 hours.

According to Vice President of Cargo Operations, Marselinus Erick, this partnership combines Kargo's medium-range capabilities with Teleport's long-range expertise. This investment will also expand Teleport's medium-haul capability to go beyond air cargo, combine air connectivity with ground capabilities, and leverage Kargo's robust technology and truck network.

“With this partnership, we will leverage Teleport's customer base and deal with them based on our expertise. Cargo will be able to meet mid-mile services on the ground, while Teleport will be able to meet air and last-mile cargo needs. This will increase our offerings and increase fulfillment efficiency to our customers," he said in an official statement, Saturday, February 5.

Meanwhile, Teleport CEO, Pete Chareonwongsak, in an official statement previously said that this collaboration was carried out to provide solutions to facilitate an integrated logistics ecosystem. He believes that the cooperation of the two parties can provide positive results for the development of developing cities in Indonesia in particular, and Southeast Asia in general.

“We understand that the fastest growing cities in the future will be middle class cities. We need to go beyond the network to connect these developing cities. The partnership with Kargo makes us ready to cross Southeast Asia," he added.

Kargo's Co-Founder and CEO, Tiger Fang, added, “The strategic partnership with Teleport will help us become multi-modal, expanding the value chain horizontally. We hope this partnership can be mutually beneficial to both parties by growing each other's presence in Southeast Asia by 2022 as we work to solve the region's evergreen logistics problems."

Kargo also continues to make various innovations in an effort to increase the growth of the company and its business. Even during the pandemic, Kargo partners got more than double the amount of work compared to without the platform's support. Currently, Kargo has more than 75,000 fleets in its network. A few months ago, Kargo also launched KargoNexus, which offers SaaS to enterprises, to help implement precise monitoring and tracking for performance evaluation and analysis of their logistics operations.