Locad raises $9M for expansion into Middle East

Locad, a startup logistics firm, wants to help SMEs keep up with larger enterprises. —CONTRIBUTED PHOTOS

Homegrown logistics solution provider Locad raised $9 million from its latest funding round, which it would use to expand presence in the Middle East.

In a statement on Wednesday, the company said the funding round was led by Global Ventures and Reefknot Investments. Other investors were Sumitomo Equity Ventures, Antler Elevate, Feb Ventures and JG Digital Equity Ventures.

The logistics firm conducted the activity to launch its business in the United Arab Emirates and Saudi Arabia.

READ: PH-based digital logistics company gets $11-M funding

Locad, which began in the Philippines in 2020, has set up shop across 10 markets in Asia-Pacific and the United States.

The fresh equity would also go to improving its artificial intelligence-driven smart logistics tools that help merchants in maintaining their supply chain infrastructure.

Locad offers cloud supply chain solutions that can consolidate inventory items in one platform as clients usually sell their products in different online shops and e-commerce channels.

“We are now excited to take Locad global, opening our presence in the US and entering the GCC (Gulf Cooperation Council), to make it easier for brands to sell anywhere with a fully localized customer experience,” Locad CEO and cofounder Constantin Robertz said.

Warehouse upgrades

In the Philippines, it has six fulfillment centers across the National Capital Region, south Luzon, Visayas and Mindanao.

“With the global expansion of our network and our recently launched Locad borderless trade solutions, we are excited to help Philippine brands expand their distribution in international markets,” Robertz said.

Last year, Locad raised $11 million from a Series A funding round led by Reefknot Investments, a firm backed by Temasek and logistics company Kuehne & Nagel.

The capital injection was allocated for warehouse expansion and product development.

In a study published in September, social media giant TikTok noted that about 60 percent of their Filipino users start their online Christmas shopping as early as September, meticulously looking for the cheapest products and affordable alternatives during mega sales. 

Of the number, 74 percent scroll through the platform more than once a day.

The study noted the buyers were 2.3 times more likely to increase their spending this year. INQ