In 2021, logistics startups in Southeast Asia were riding high, accounting for a significant 24% of the region’s overall startup funding in the year. The e-commerce boom — fueled by a surge in online shopping amid pandemic-induced lockdowns — brought unprecedented attention and capital to the sector.
Fast forward to 2024, and the story has taken a sharp turn. The share of logistics funding in the region plummeted to a mere 3% of overall startup funding in Jan-Sept 2024 (9M 2024), reflecting shifting investor priorities as the COVID-driven frenzy has cooled off.
However, the current year also witnessed signs of a rebound in logistics funding — in step with the surge in e-commerce gross merchandise value (GMV) in the region — compared to the sluggishness of 2022 and 2023.
While the value of deals sealed by logistics startups leapt 83.4% year-on-year to around $96 million in 9M 2024, deal count rose 21.4% to 17, according to the State of Logistics in SE Asia 2024 report by DATA VANTAGE. The growth came despite overall startup funding in Southeast Asia falling 44% in the nine-month period.
Share of logistics funding in SE Asia
Logistics funding in SE Asia
Smaller-sized deals
Interestingly, the top three deals accounted for around 70% of the total logistics funding in Southeast Asia since 2020.
In November 2021, Indonesian courier startup J&T Express raised $2.5 billion in a funding round at a valuation of $20 billion. J&T’s main backers — Boyu Capital, Hillhouse Capital Group, and Sequoia Capital China — and Chinese gaming and internet giant Tencent Holdings were among the investors in the fundraising.
In March of the same year, J&T Express, which is now listed in Hong Kong, had raised $2 billion. These remain the top two transactions in the sector in the last four years.
In comparison, the top logistics deal so far this year was Kargo Technologies’ $22.5 million fundraising in July. The Indonesia-based B2B trucking company received backing from AC Ventures and Silicon Valley-based Tenaya Capital, besides Cyprus-based SiteGround Capital, VC firms Peak XV Partners, Intudo Ventures and AppWorks, and Dubai-based Mawja Group.
Top deals in SE Asian logistics sector (2020-24)
E-commerce GMV witnesses rapid rise
E-commerce has been the single largest factor transforming the logistics sector in the region.
Growing consumer preference for online shopping, rising internet penetration and smartphone usage in Southeast Asia have led to a consistent increase in e-commerce GMV.
E-commerce GMV in SE Asia
However, hit by the funding winter, equity funding in e-commerce slumped by 81.5% to $300 million in 9M 2024 from $1.6 billion during the same period in the previous year. Deal volume also dropped to just 30 from 54 in the first nine months of 2023.
Indonesia grabs the lion’s share of logistics funding in SE Asia
Indonesia—Southeast Asia’s largest market by GDP and consumption—is the most preferred destination for investors looking for logistics bets. Since 2020, it has accounted for 70% of logistics funding in the region. Meanwhile, Singapore, which has topped the World Bank’s global logistics performance index rankings, has attracted only 14.6% of logistics investments.
Logistics funding in SE Asia by country
Indonesia raked in a little more than $41 million during 9M 2024 across five deals way more than its SE Asian peers.
Industry leaders reckon that Indonesia’s robust economic growth, rising digital population and soaring e-commerce market make it an attractive investment destination.
Startups headquartered in Singapore could raise only $9.8 million across four deals in 9M 2024. This marks a significant slump in the country’s logistics funding this year. Singapore startups had raised $68.9 million in 2023, the highest capital raise among all Southeast Asian nations and accounted for more than 76% of logistics funding into the region.
Logistics funding in Indonesia vs Singapore
SE Asia’s logistics funding trend mirrors India
The funding trend in Southeast Asian logistics has stark similarities with the investment pattern in Indian logistics. Both regions witnessed their logistics deal value and volume revive in 9M 2024 after two years of decline.
India’s logistics startups raised $1.4 billion in the first three quarters of 2024, which is more than a five times the $258 million in the year-ago period.
Logistics funding in SE Asia vs India (deal value)
The number of transactions rose to 30 in 9M 2024 from 27 in the corresponding period of 2023.
Logistics funding in SE Asia vs India (deal volume)
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