International trade activities began to recover from the pandemic. According to the United Nations, international trade value in the first quarter of 2021 increased by 10%, in which the Asian economy plays an essential contribution.
According to ASEAN Stats data, the value of international trade in the Southeast Asia region, both between member countries and from/to other areas, was valued at US$2.8 trillion in 2019 and is predicted to continue increasing in the next few years. The sector has proven its role as one of the backbone of the Southeast Asian economy yet still considered underdeveloped and overlooked, with the total value of collective investments in several local startups amounting to less than US$40 million.
Comparably, other regions have put more effort into developing and building the logistics and international trade sectors since the past decade. Entrepreneurs have already been capturing these opportunities with hundreds of million dollars poured from investors, thus resulting in several logistics & international trade startup unicorns globally. For example, Flexport from the United States and Forto from Europe have Softbank's support in their mission to facilitate international trade. In China, YunQuna is supported by Sequoia and Sumitomo. Each became the local champion in their respective region.
In Southeast Asia, Andalin (a Jakarta Founder Institute portfolio company) is one of the logistics and international trade startups who believes in the industry’s potential. From 2019 to June 2021, Andalin has facilitated the export and import of goods in Southeast Asia with a total value of US$50 million. According to Andalin CEO Rifki Pratomo,
We believe that international trade is one of the key pillars that supports economic growth in Southeast Asia. For this reason, we strive to be a reliable partner for international trade players to sustain this increasingly high growth demand. Andalin, as a local player in the Southeast Asia region, is committed to providing comprehensive solutions through our digital technology platform.
So far, Andalin has served more than 300 clients from various types of industries, from small and medium enterprises to large corporations, such as Rentokil Initial, Hitachi, to Electrolux. Recently, Andalin also launched the Andalin Go application to improve export and import efficiency, where clients can set delivery schedules, get instant price quotes, and consult directly with Andalin's expert team through one simple and practical application.
Due to the large market potential, as well as the company's rapid development in 2021, Andalin received funding from one of the largest state-owned banks in Indonesia, Bank Rakyat Indonesia (BRI) - through its venture arm, BRI Ventures. Previously, Andalin has also been supported by other local and global investors such as Ideosource, Beenext, Access Venture, and ATM Capital. Rifki added,
As a pioneering startup in logistics and international trade in Southeast Asia, Andalin is equipped with a strong network, experienced team and technological advantages to work on this promising market share. Since the series A funding in March 2021, Andalin's business performance has grown 3x. Looking at this rapid development, we have plans to raise funds in the near future to increase the acceleration of Andalin's growth in order to facilitate more international trade movements.
In recent years, the rapid development of technology companies in Southeast Asia has raised the interests of both local and global investors. Indonesia shows great proof in being able to generate the first wave of unicorn companies founded by local entrepreneurs. The potential for the second wave of technological disruption in Southeast Asia is still wide open in various sectors such as health, education, logistics, finance and so on. Andalin is leveraging differences among the Southeast Asian market as its focus, further establishing relevancy to the nascent yet promising potential of the international trade sector in the next few years.
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Andalin (Andalin.com) is a technology company in the field of logistics and international trade that helps business players to conduct export and import on an international scale more easily. With a Customs Brokerage and International Freight Forwarding license, Andalin has served hundreds of companies in Indonesia through its platform, including well-known brands such as Rentokil Initial, Hitachi, Fuji Seal, Wings Group, Krispy Kreme, and Electrolux.
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