INDONESIA – Amatil X, the corporate venture capital platform of Coca-Cola Amatil Indonesia has made a strategic investment in Indonesian logistics startup, Kargo Technologies as part of the bottler’s broader strategy to digitize its operations.
Kargo Technologies is a freight logistics startup that integrates shippers and logistics providers onto a single marketplace aiming at digitizing Indonesia’s freight logistics industry by leveraging technology to drive efficiency, transparency and accountability.
The startup has developed a platform that enables shippers, transporters and truckers to connect, transact and track shipments in real time through its website of app.
Coca-Cola Amatil Indonesia said that investing in Kargo Technologies will enable the company to optimise its logistics capability by increasing productivity and efficiency on some of its key trucking routes.
“Our investment in Kargo Technologies supports our ambition to be a leading player in the digital ecosystem here in Indonesia,” Coca-Cola Amatil Indonesia President Director, Kadir Gunduz said.
“Kargo Technologies is our first startup investment in Indonesia and we are excited to be partnering with them to improve our overall logistics capability.
“Kargo is fulfilling two key land transportation routes for us and we expect this to increase over time as Kargo’s network expands.”
Gunduz says that technology plays a crucial role in the company’s transformation journey, and especially so in the last decade.
In achieving its commitment and targets, Amatil Indonesia has invested heavily in state-of -the-art systems and technology to support its nation-wide operations and partnered with Indonesia’s leading technology providers.
Gunduz said that the company is focusing on developing its people and embedding disruptive and breakthrough problem-solving culture, for example through introducing Artificial Intelligence and Virtual Reality experience.
“The new partnership will help us to extend our competitive advantage by improving the way we do business or the way we service our customers,” Gunduz added.
Tiger Fang, CEO of Kargo Technologies said that he was excited to work with Coca-Cola Amatil to further digitise and optimise their supply chain in Indonesia adding that tech-enabled logistics is a proven trend in other markets, including India, China and the USA.
Despite road logistics contributing about 16% of Indonesia’s GDP with approximately US$40 billion spent on trucking each year, Tiger Fang noted that the industry is highly fragmented.
Fang says that Kargo is building the digital infrastructure to bring efficiency to Indonesia’s logistics system. Kargo last completed a US$7.6 million funding round in 2019.