MANILA – Philippine logistics startup LOCAD said Monday it has received $4.9 million (P241.6 million) in seed round funding from venture capital firms led by Sequoia Capital which has invested in successful tech giants like Zoom, YouTube, and Airbnb.
Aside from Sequoia India's Surge accelerator program, LOCAD also got funding from Antler, Febe Ventures, Foxmont, Global Founders Capital, Gokongwei Family, and Hustle Fund.
LOCAD uses cloud-based technology for its logistics solutions that gives big and smaller e-commerce brands access to a distributed warehousing network not just in the Philippines but also in the wider Asia Pacific region.
With the fresh funds, LOCAD co-founder and chief executive officer Constantin Robertz said they're poised to further expand their warehouse network in the Philippines while investing on their regional expansion.
From five warehouses across the greater Metro Manila area, Cebu, and Davao, LOCAD aims to reach other major cities which are also in need of logistics services, the company said.
"We need a couple of strategically placed warehouses throughout the country, those would mean larger warehouses that we're looking for that have the power to scale up throughout the 'ber months', throughout the peaks," said LOCAD co-founder and COO Jannis Dargel.
"Then you need some strategic small hubs around the country that would then be able to cover really all of the segments of cities with prime delivery standards," Dargel added.
Besides reducing logistics cost for businesses by 40 percent, LOCAD’s services will also benefit consumers, according to company co-founder and CEO Constantin Robertz.
"Receiving your goods faster and having lower shipping costs. Those shipping costs, in many cases in e-commerce, are actually paid directly from the consumer," Robertz said.