Jan 29, 2023 | 12:00 AM
MANILA, PHILIPPINES — Singapore-based Reefknot Investments has invested $11 million in a Philippine start-up that aims to streamline logistics solutions for e-commerce players across the Asia-Pacific region.
Reefknot, a venture capital firm for high-performing companies in Southeast Asia, wants to improve its portfolio by increasing investments in the region and helping local start-ups go global.
In line with this, Reefknot led Locad’s Series A funding alongside Access Ventures, JG Summit, Sequoia Surge, Febe Ventures, Hustle Fund and Foxmont.
Reefknot invested $11 million in Locad to strengthen its logistics operations by encouraging it to build a large supply chain network in Asia and the Pacific.
Locad acts as a logistics engine that works with e-commerce brands to expand their local reach. Deploy cloud channels to automatically store, pack, ship and track orders.
The company organizes end-to-end deliveries through a network of shippers and warehouses spanning the Philippines, Australia, Hong Kong, Singapore and Thailand.
Prior to investment, Locad has processed over 2 million orders in the region and maintains a 99% same-day fulfillment rate.
Locad hopes its cloud platform will help reduce inventory errors, expedite the shipping process, minimize logistics costs, and help extend the reach of e-commerce merchants.
Reefknot vice president Ervin Lim said venture capitalists chose to invest in Locad to strengthen their capital.
Lim said Reefknot supports Locad’s move to remain an asset-light business by allocating inventory across warehouses in the region.
This allows Locad to ensure inventory is kept close to its customers, thus saving costs and time for suppliers and buyers.
“The Asia-Pacific region, including the Philippines, has emerged as an investment region thanks to its macroeconomic tailwinds and innate understanding of its various markets. Reefknot helps start-ups expand their services and coverage in the region We are committed to partnering with the fastest growing supply chain and logistics start-ups given their global support and expertise.
The Department of Trade and Industry (DTI) will launch a national logistics strategy later this year to guide logistics players on how they can further contribute to economic growth.
About Reefknot, Lim said the company will explore new opportunities in the Philippines, pledging to provide investments in local start-ups transforming supply chains.
