SiCepat Holding Company Channels Investment to M Cash Subsidiary

Onstar Express Pte. Ltd., also known as the logistics holding company of SiCepat Ekspres, announced its investment to Logitek Digital Nusantara (LDN) which is a subsidiary of Telefast part of the M Cash group. LDN has helped develop SiCepat service sub-units, including a WhatsApp-based customer application called SiCepat Klik and SiCepat Point delivery point services.

The investment will be used to develop product innovations to enable Indonesian logistics providers to collaborate with extensive offline networks, and help improve the logistics solutions developed by LDN. Apart from SiCepat, LDN is also partnering with other logistics players such as Paxel to strengthen its third-party logistics (3PL) ecosystem.

"We notice the tremendous development capacity of the fast-growing Courier, Express, & Parcel (CEP) market in Indonesia, projected to grow exponentially to $5 billion by 2024. Built on SiCepat's logistics expertise and knowledge of the Indonesian market and is supported by MCAS Group technology infrastructure, we strive to build an inclusive and accessible 3PL ecosystem that can even facilitate the logistics activities of other players in Indonesia," Onstar & SiCepat's CMO, Wiwin D. Herawati said.

Previously, SiCepat has also invested in other M Cash units. Early last year they announced the acquisition of a 51% stake in DigiResto and have now integrated it into SiCepat services. One of the missions is to accelerate business growth by exploring new business potentials in the food delivery segment.

"We expect DigiResto to provide new opportunities for service innovation that can bring us closer to consumers, SMEs, and merchants, especially those engaged in the F&B sector," Wiwin said in an interview with DailySocial.

GMV food delivery services continue to increase, driven by new habits that have emerged as a result of the pandemic. Based on Momentum Works report, throughout 2020 the food delivery industry in Indonesia managed to book GMV worth $3.7 billion or equivalent to Rp52 trillion. The number was dominated by two decacorn Grab and Gojek with a share of 53% and 47% respectively of the total market share.

Earlier this month, SiCepat also announced its series B funding with a total value of $170 million or 2.44 trillion Rupiah. This round was participated by a number of investors including Falcon House Partners, Kejora Capital, DEG, MDI Ventures, Indies Capital, Pavilion Capital, Tri Hill, and Daiwa Securities.

In DailySocial observation, throughout 2020, SiCepat Ekspres had booked transactions of IDR 3.5 trillion, an increase of 194% compared to 2019 with a total shipment of 180 million packages throughout Indonesia.

–Original article is in Indonesian, translated by Kristin Siagian