Locad’s AI-Driven Expansion: Revolutionizing Logistics in the Middle East
Discover how Locad, a pioneering logistics startup, is securing $9 million in funding to enhance its AI capabilities while expanding operations into the Middle East. Explore the transformative impact of technology on global supply chains.
As global commerce continues to evolve, the logistics sector is experiencing a significant transformation driven by artificial intelligence (AI). A prime example is Locad, a logistics startup that recently raised $9 million in Pre-Series B funding to enhance its AI capabilities while expanding its operations into the Middle East. This strategic move reflects both the company’s rapid growth and the increasing importance of AI in logistics management.
Founded in 2020 in the Philippines, Locad has established itself as a leading provider of end-to-end logistics and warehousing solutions. With six fulfillment centers across the Philippines, the company supports over 300 consumer brands in Southeast Asia and Australia. The recent funding round, co-led by Global Ventures and Reefknot Investments, aims to facilitate Locad’s ambitious expansion plans, beginning with the United Arab Emirates and Saudi Arabia.
AI-Driven Technologies
At the heart of Locad’s strategy is its commitment to developing AI-driven technologies that enhance smart logistics capabilities. The funding will allow the startup to improve its Control Tower orchestration platform, which provides real-time visibility and analytics while automating workflows. This platform connects various sales channels—from e-commerce giants like Shopify and Amazon to social media platforms like TikTok—into a single pool of inventory, streamlining operations for brands and reducing delivery times.
Creating a Robust Supply Chain
Locad’s approach to logistics is not just about efficiency; it’s about creating a robust supply chain infrastructure that empowers brands to thrive in competitive markets. By utilizing AI, Locad is able to:
- Analyze data patterns
- Optimize routing
- Predict demand
This ultimately enhances customer satisfaction. The company’s vision is to build a global cloud supply chain as-a-service, connecting brands to consumers seamlessly.
Global Expansion Potential
Constantin Robertz, co-founder and CEO of Locad, emphasizes the potential for brands to expand their reach in international markets through this AI-driven model. “We are excited to help Philippine brands expand their distribution globally,” he stated. The company’s innovative solutions are designed to boost omnichannel business strategies, allowing brands to automatically store, pack, ship, and track orders efficiently.
As Locad gears up for its Middle Eastern expansion, its focus on AI-driven logistics serves as a testament to how technology can reshape traditional supply chains. The company is not only setting a precedent for logistics in the region but also showcasing the capabilities of Philippine startups in the global arena.
Marc Dragon, Managing Director at Reefknot Investments, expressed confidence in Locad’s global expansion, highlighting the exceptional value it creates for brands aiming to grow overseas. Similarly, Paulo Campos III, a founding managing partner at Kaya Founders, noted that Locad’s journey illustrates the potential for local businesses to succeed on a global scale.
In conclusion, Locad’s strategic use of AI to enhance logistics operations positions it as a key player in the evolving landscape of global supply chains. As the company embarks on its journey into the Middle East, the logistics industry will closely watch how Locad leverages technology to redefine logistics and warehousing solutions.
