Ecommerce logistics startup Locad said on Wednesday it has raised $9 million as it aims to expand in Saudi Arabia and the United Arab Emirates in the fourth quarter.

While the company did not disclose the valuation at which the fundraising was made, a source familiar with the matter said it was around $60 million.

The pre-series B funding round was co-led by Global Ventures and existing investor Reefknot Investments. Sumitomo Equity Ventures and other existing investors such as Antler Elevate, Febe Ventures and JG Summit also participated.

WHY IT'S IMPORTANT

A boom in the ecommerce market since the COVID-19 pandemic has triggered demand for robust logistics services. The use of AI-powered tools in ecommerce services has also attracted investments from businesses looking to optimize operations and save costs.

Locad also plans to use the funds to enhance its AI-driven features and develop better analytics for demand and inventory.

CONTEXT

Locad provides logistics services, including order fulfillment, warehousing and inventory management.

The company's logistics engine, which is its cloud-based software platform, integrates with ecommerce platforms such as Shopify, Shopee, Amazon and TikTok Shop, enabling them to optimize their inventory and delivery management.

KEY QUOTE

"This fundraise allows us to double down on building a robust, tech-enabled logistics ecosystem that drives efficiency and helps brands thrive in an increasingly dynamic commerce landscape," said Shrey Jain, co-founder and CTO of Locad.

BY THE NUMBERS

The startup had raised $11 million in series A funding round, led by Reefknot Investments, last year.

Since then, Locad said it has expanded its market presence and now has more than 300 customers across Southeast Asia and Australia.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar)