Teleport, airasia’s logistics company, has invested in Kargo Technologies, the Indonesian trucking market, in the form of convertible notes. This acquisition was financed by sources generated internally by Teleport.
The investment connects Kargo’s trucking network to Teleport’s infrastructure, extending Teleport’s midstream capabilities beyond just air freight. In line with Teleport’s mission to move things across Southeast Asia better than anyone else, the partnership with Kargo opens up an opportunity to combine aerial connectivity with ground trucking capabilities, leveraging a technology strong and improving the network.
For Indonesia in particular, given its geography and archipelagic topography, the most efficient way to connect these cities is to operate a “middle mile” service linking both land and air. For Kargo, Teleport’s regional presence, vast network and wealth of data will help them rapidly expand their presence in the region. The partnership will also support Teleport’s commitment to making round-the-clock deliveries possible using multimodal routes across the archipelago.
Kargo Technologies has more than 75,000 trucks in its network and digitizes logistics for shippers and carriers. Kargo will use the funds from the transaction to support the company’s continued growth for end-to-end freight coverage in the B2B space and for expansion to other cities in the region in conjunction with Teleport.
Pete Chareonwongsak, CEO of Teleport, said: “When we were first connected with Tiger Fang, co-founder and CEO of Kargo in 2021, we almost instantly agreed that a business partnership and potential investment from Teleport would make sense to both parties. has always been our goal to deliver fast at low cost and serve the underserved, which is why we recognize that the fastest growing cities of the future will be small “midsize” cities, rather than major major cities. »
To support this, Chareonwongsak said Teleport needs to look beyond the AirAsia network and air travel to connect these emerging cities. At the same time, Fang said the strategic partnership with Teleport will help the company become multimodal, expanding horizontally in the value chain. “We expect the partnership to be mutually beneficial to both parties by strengthening each other’s presence in Southeast Asia in 2022 as we seek to address the region’s lingering logistics challenge,” said fang.
Separately, AirAsia Group has renamed the holding company to Capital A to reflect its new core business strategy as an investment holding company with a portfolio of synergistic travel and lifestyle businesses. According to the Group, the name change will have no effect on the company’s activities. CEO Tony Fernandes also said he believes the company’s new name will further improve the marketing of its products and bolster its group’s long-term success.
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