JAKARTA — When Indonesian logistics company SiCepat Ekspres declared itself a “soonicorn” — a startup with a potential to be valued at $1 billion or more, making it a unicorn — after closing a $170 million funding round in March, the announcement raised some eyebrows.
Although it had previously raised over $100 million in funding, the last-mile delivery company had hardly been seen as a contender to become the archipelago’s next unicorn.
A key factor in the logistics startup’s quiet, yet meteoric, rise has been how it has used a web of affiliates to expand its gamut of offerings. The company, which started as a last-mile delivery company for online merchants in 2014, today offers warehousing and fulfilment, commerce-enabling services, online distribution and middle-mile logistics services.
SiCepat’s parent company, Onstar Express, owns a host of subsidiaries that provide additional services to supplement those offered by the flagship brand. These affiliates include PT Clodeo Indonesia Jaya, PT CKL Indonesia Jaya, PT Bintang Dagang Internasional and PT Bintang Aset Indonesia.
In fact, SiCepat’s latest funding was raised to fuel the growth of all of Onstar’s subsidiaries. When contacted, both SiCepat and Onstar declined to confirm the details of the providers of its “end-to-end” logistics services.
The holding company said it would further invest into its logistics services and infrastructure, including last-mile, fulfilment, e-commerce-enabler, merchant platform and mid-mile logistics offerings.
“Our goal is to support and empower millions of [small and medium-sized enterprises] and local businesses not only to survive but to thrive, as well by providing the ease of use where they can fully manage orders supported by our comprehensive solutions. Hence, user/merchant satisfaction levels and stickiness will be enhanced,” said Onstar Express corporate finance vice-president Yurizki Rio.
Among SiCepat’s oldest affiliates is Bandung-based PT Clodeo, a platform that helps online merchants manage their inventories.
Founded in 2017, Clodeo received an investment from Onstar before being taken under the holding company’s wings. Soon after, the startup’s co-founder and Chief Technology Officer Reynaldi Oeoen assumed the position of SiCepat CTO in 2018. Currently, Clodeo provides pick-up services to merchants, and its partners include SiCepat and its peers, including J&T, JNE, Anteraja and NinjaExpress.
On the warehousing side, Onstar has Haistar, a company founded and led by former SiCepat Chief Commercial Officer Donny Maya Wardhana. The company offers warehousing, sales channel and delivery management for e-commerce merchants, and much like Clodeo, partners with a host of last-mile courier companies.
Interestingly, Haistar gets part of its business from an exclusive tie-up with Tokopedia, the Indonesian e-commerce specialist which is understood to have invested in SiCepat in 2019, as reported by DealStreetAsia last year. Haistar is one of only three warehousing companies used by Tokopedia to roll out its own fulfilment service, called TokoCabang. In the terms and conditions for TokoCabang, Tokopedia says that its fulfilment service will be provided by a partner by the name of PT Bintang Dagang International, which is Haistar’s legal name.
Last year, Haistar’s Wardhana founded another company called Hera.id, the latest addition to Onstar’s suite of logistics subsidiaries. Hera operates as an e-commerce enabler that provides multi-channel management, multi-location e-fulfilment and distribution to brand owners.
In the middle-mile play, SiCepat leverages the air freight capabilities of its sister company, CKL, which was founded a year after the former’s establishment in 2014.
According to Rafael Damar, a senior analyst at Asia-focused strategic advisory firm YCP Solidiance, the expansion by logistics startups into multiple verticals can be expected given the intricate nature of modern supply chain networks requiring many different…