Andalin bags undisclosed amount in Series A funding

Indonesia-based shipping services startup Andalin announced in March 2021 that it has raised an undisclosed amount in Series A funding from Sembrani Nusantara Fund (SNF), a fund operated by Indonesian corporate VC firm BRI Ventures.

The startup will use the proceeds from the funding round to establish its freight consolidation infrastructure and expand its branch offices in the international port cities of Semarang, Surabaya, Medan and Makassar. It is also seeking to launch operations in Japan, Thailand, China, Vietnam and South Korea.

About the startup

Founded in 2016, Andalin offers digital cross-border shipping services in Indonesia to help local micro, small, and medium enterprises (MSMEs) simplify their import-export processes, from freight arrangements to customs clearance and other related facilities. In spite of the economic impacts of COVID-19, the startup claims it saw demand for its services increase in 2020. Its shipment volume surged by approximately 5 times and average revenue per client rose by 450 per cent year on year. It also stated that it facilitated shipments of goods worth US$ 20M in 2020 and was close to EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) positive by the year-end. It aims to increase its gross merchandise value to US$ 100M and is on track to raise another round of funding by the end of 2021.

Statements from the stakeholders

Nicko Widjaja, CEO of BRI Ventures said with companies like Andalin supporting the local import-export game, Indonesia will be able to reduce its trade deficit. He added that even if they put aside COVID-19’s impact on global trade, very clear patterns still emerge in this market, such as the country’s overall e-commerce gross merchandise volume of US$ 130 billion in 2020.

This is Sembrani Nusantara Fund’s third investment since launching in June 2020. In December 2020, it announced back-to-back investments into Indonesian drink brand Haus! and local direct-to-consumer shoe startup Brodo.

CEO Rifki Pratomo said they view this as an opportunity to digitise first-mile logistics, streamlining the often complex and opaque sourcing process for MSMEs while reducing cost barriers. He added that all goes well, this will encourage them to accept more import-export activities. Andalin will increase the capacity and quality of export-oriented products to and from Indonesia, and hopefully reduce the trade deficit, he concluded.

Previously, the startup had raised a seven-figure sum in a pre-Series A round held in October 2020.

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