Logistics Vehicle Management Platform "McEasy" Bags Seed Funding from East Ventures

SaaS startup for logistics vehicle management and tracking McEasy announced a $1.5 million (approximately IDR 22 billion) seed funding from East Ventures. The funds will be used to build logistics technology, recruit marketing and sales teams to reach more users.

"Smart tracking systems are not new in the automotive and industrial world, but we know how to integrate existing hardware, from sensors to GPS, with our platform to be the right solution. With a business plan previously designed, we believe that funds from investors will drive the company's growth exponentially," McEasy's Co-Founder, Raymond Sutjiono said in an official statement, Tuesday (14/9).

East Ventures' partner Melisa Irene said the application of technology solutions to drive increased asset management efficiency and achieve customer satisfaction is currently the main key in winning the competition in the logistics industry.

“McEasy has succeeded in providing solutions and products that are suitable for various players in the Indonesian logistics industry to help them identify the potential of the logistics market that is currently developing until the post-pandemic. We are delighted to welcome McEasy to the East Ventures ecosystem,” she said.

McEasy team / McEasy

Industry growth momentum

This startup was founded in 2017 by Raymond Sutjiono and Hendrik Ekowaluyo. Both have experience working at Ford. Hendrik is in structural design and in-car program management, while Raymond is an expert in engine electronics, system control, and vehicle data handling.

Both pioneered McEasy as a digitalization catalyst in the B2B logistics and transportation industry. To date, there are still several challenges clouding the logistics transportation management in Indonesia. Among them, the limited integration from one party to another, even though they are still in the same supply chain.

Moreover, business operational processes tend to rely on manual methods with complicated administration, therefore, the digitization process is yet to run smoothly; the same goes with automation and optimization systems to simplify logistics operations.

According to the Indonesian Logistics and Forwarders Association (ALFI), Indonesia's logistics industry business growth potential from year to year is around 40 trillion Rupiah ($2.8 billion). Based on Redseer's analysis, the industry has seen up to 100% growth during the pandemic.

Provided solutions

McEasy provides two solutions, Vehicle Smart Management System (VSMS) and Transportation Management System (TMS) & Smart Driver Apps. VSMS is a smart tracker-based digital solution to assist logistics operations and real-time tracking of vehicle locations.

Meanwhile, TMS is a SaaS for integrated planning, implementation, monitoring, and optimization of freight forwarding processes. Through integration in Smart Driver Apps, McEasy customers can track their vehicle position and all operational costs transparently, without the hassle of checking them manually.

Both of these solutions is available for logistics business players, from manufacturing & distribution companies to large brand companies that already have their own fleet or are integrated with logistics service providers.

McEasy's Co-Founder, Hendrik Ekowaluyo added that the main strength of its service lies in its flexible platform, which is a solution to every customer's needs. Different from other software providers, they will usually explore the client's main problem, then explain how to use elements on our platform to solve the problem.

“For example, logistics company A has problem X, next, we will look for the most optimal settings on the platform and guide the client using those settings as a solution. In terms of scalability, this business concept is much more sustainable because we just have to explore the features in the platform without having to create different software every time,” he said.

McEasy uses a subscription-based business model and provides solutions that can be tailored to the scale of the customer's business, such as 3PL, 4PL, distributor, or brand owner. To date, the areas covered by McEasy's digital solutions include Java, Bali, Sumatra, Kalimantan and Sulawesi.

Its customer portfolio covers various industries and business sizes, for example MGM Bosco for the cold-chain sector, Rosalia Indah Group for the public transportation sector, as well as RPX and FeDex Indonesia for the last-mile logistics sector in Indonesia.

Since the pandemic, McEasy's business has also been boosted thanks to digital transformation in the logistics industry. The number of its subscribers has grown 10 times. The company targets in the last quarter of this year to double the total number of vehicles integrated with the system, as well as assist in digitizing the transportation system for corporate customers.

Meanwhile, in the following year, the company will increase its target to achieve four times minimum growth for 2021. McEasy's ambition is to create an integrated ecosystem that makes it easier for stakeholders to optimize all logistics and supply chain processes.

Logistics startup funding trend

In supporting the digital economy, the logistics industry still has a lot of friction in its business processes. This opportunity encourages startup players to jump in which requires a lot of investment in developing their technology.

Since 2019 to July 2021, the DailySocial research team recorded around 16 announced funding transactions involving technology-based logistics companies. This investment managed to record a total fund value of $586 million. There are at least 4 logistics startups that have a valuation above $100 million, including SiCepat, Waresix, Shipper, and GudangAda.