Indonesian cold-chain solutions provider Coldspace bags US$3.8 million in seed funding

INDONESIAN cold-chain solutions provider Coldspace has raised US$3.8 million in seed funding from its first external round of fundraising, the company said on Wednesday (May 3).

The funding round was led by venture capital firm Intudo Ventures, logistics firm ASSA and agricultural conglomerate Triputra Group. Other participants included agriculture companies Indo Tani Sejahtera and Mustika Karya Anugrah.

The company plans to use the funding to expand its capacity for cold storage, refrigerated (reefer) trucks, fulfilment, and geographic coverage. It also plans to launch a suite of management solutions for its customers to help manage and track products, to mitigate waste and spoilage.

Founded in December 2022, Coldspace provides integrated end-to-end cold-chain solutions, and operates in the Greater Jakarta Region, Surabaya, Malang, Bali, and Medan, with plans to expand throughout the country.

It also works with businesses such as food & beverage producers and logistics companies to provide storage and transportation of temperature-sensitive products.

The company, which is led by chief executive officer Arnold Giovanni, offers cold storage facilities and reefer trucks through its own inventory as well as through a third-party aggregated marketplace of cold-chain partners.

It currently manages 3,000 tonnes of cold storage capacity and 20 reefer trucks, while its marketplace features 30,000 tonnes of cold storage capacity and 100 reefer trucks operated by its partners.

Coldspace said that cold-chain solutions are in high demand in Indonesia, since the country’s tropical climate and archipelagic geography lead to high rates of food waste and spoilage of temperature-sensitive cargo such as pharmaceuticals.

It added that the rise of Indonesia’s middle class has also resulted in rapid demand for pre-packaged food and beverages, which required handling and storage in temperature-controlled facilities.

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“With emerging demand for fresh foods, pharmaceuticals, and other temperature-sensitive products, Indonesia has often lacked climate-controlled infrastructure needed to prevent spoilage, leading to waste and product loss,” said Patrick Yip, founding partner at Intudo Ventures.

“By targeting a fragmented and traditional space marked by inefficiencies and gaps in service, Coldspace is building out a seamless end-to-end cold-chain that ensures proper handling of products, while providing customers with powerful tech-enabled tools to monitor and manage products throughout the supply chain.”