Logistics tech start-up Luwjistik acquired by Australian company

Singapore logistics technology startup, Luwjistik has been acquired by Australian eCommerce logistics technology platform Shippit, for S$16.4 million.

Shippit’s Co-founder and Co-CEO, William On, will relocate to Singapore to head up the Southeast Asian operation of the combined entity which would have a team of 50 - including local Research & Development and back-office teams.

Founded in 2021 by logistics and e-commerce veteran, Syed Ali Ridha Madihid, and fellow entrepreneur, Wong Yingming, Luwjistik’s unified API allows freight forwarders, couriers, and third-party logistics companies to connect with network partners globally.

It counts carriers such as Ninja Van, J&T Express and JNE Express as partners and works with logistics players like Maersk, POS Malaysia, Lion Parcel and Summer International.

Last year it got US$1.1 million (S$1.53 million) in a seed round led by East Ventures, with participation from MDI-Finch’s Arise and Global Founders Capital.

Luwjistik has agreements with more than 100 network partners across 18 countries, with a deep focus on Southeast Asia.

Shippit said the acquisition would help it to “double-down on growth in the region” by leveraging Luwjistik’s technology, local relationships, and expertise.

“This strategic move will expand our growing and scaling business through product localisation and new market entry beyond Singapore,” On said.

“Southeast Asia is a burgeoning eCommerce market and we’re incredibly excited to expand our presence in Singapore, and across the region,” he added.

Madihid, said the expanded entity would be able to offer a “one-stop platform” for not only enterprises “but the growing SMEs segments - especially in Indonesia, Malaysia, Philippines and Thailand”.

He added that by offering “multi-partner shipping” from Luwjistik’s carrier partners, Shippit would be able to diversify its offering; enabling small-to-medium-sized logistics providers to expand their reach by accessing Luwjistik network partners.

“We expect the strong growth of eCommerce in SEA will continue, so Shippit and Luwjistik coming together was very timely,” he added.

In March this year, Shippit acquired last mile technology firm Premonition for an undisclosed amount to help the company take advantage of the online shopping boom.

In May it raised A$65 million (S$58.7 million) in series B2 capital to expand its operations in Southeast Asia.

According to Shippit, in fiscal 2022 more than 40 million deliveries were booked through its platform.