Locad seeks to go to Middle East

LOCAD, a startup that offers end-to-end logistics and warehousing solutions, has raised $9 million (P531 million) in Pre-Series B funding that it plans to use to develop artificial intelligence (AI)-driven technologies as it expands overseas.

The round was co-led by Global Ventures and existing investor Reefknot Investments, it said in a statement. Other participating investors were Sumitomo Equity Ventures and existing investors Antler Elevate, Febe Ventures and JG Summit Holdings, Inc.

The new funding would fast-track Locad’s international expansion, starting with the United Arab Emirates and Saudi Arabia this quarter as part of its ‘Grow Global, Go Local’ strategy for brands, it said.

It will also use the fund to enhance its AI-driven smart logistics capabilities. “Locad is on a mission to build the supply chain infrastructure of modern commerce connecting brands to consumers in growth markets with a global cloud supply chain as-a-service,” it added.

Locad allows brands to connect all sales channels in e-commerce and retail to a single pool of inventory and a smart logistics network, managed through its Control Tower orchestration platform that provides real time visibility, analytics, and AI-enhanced workflow automation.

“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,” Constantin Robertz, chief executive officer and co-founder at Locad, said in the statement.

Through Locad, e-commerce brands with a cloud supply chain can boost their omnichannel business and automatically store, pack, ship and track orders across their business-to-consumer and business-to-business distribution channels.

Retail and e-commerce sales channels such as Shopify, Shopee, Amazon and TikTok are linked to a single pool of inventory and smart logistics network, managed through Locad’s Control Tower orchestration platform, making real-time visibility, analytics and AI-enhanced workflow automation possible.

The company also provides a geographically distributed warehousing infrastructure that lets brands stock their products closer to customers, cutting delivery costs and time.

Locad started in the Philippines in October 2020, and the country remains one of its major markets with six fulfillment centers across Metro Manila, South Luzon, the Visayas and Mindanao, it said. It supports more than 300 consumer brands in Southeast Asia and Australia.

“We are confident that Locad’s global expansion… will create exceptional value for brands aiming to grow overseas,” Reefknot Investments Managing Director Marc Dragon said.

Kaya Founders Founding Managing Partner Paulo Campos III, one of Locad’s early investors, added that the startup’s milestone highlights the potential of local businesses.

“Locad’s journey from launch in the Philippines four years ago to first regional and now global expansion demonstrates the opportunities for PH startups to go global,” he said. — Almira Louise S. Martinez