(Reuters) – E-commerce logistics startup Locad said on Wednesday it raised $9 million with the aim of expanding into Saudi Arabia and the United Arab Emirates in the fourth quarter.

Although the company did not disclose the valuation at which the fundraising was completed, 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 IS IMPORTANT

The boom in the e-commerce market since the COVID-19 pandemic has triggered demand for robust logistics services. The use of AI-based tools in e-commerce services has also attracted investment from companies looking to optimize operations and reduce costs.

Locad also plans to use the funds to improve its AI-based features and develop better demand and inventory analytics.

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 e-commerce platforms such as Shopify, Shopee, Amazon and TikTok Shop, allowing them to optimize their inventory and delivery management.

KEY QUOTE

“This fundraising allows us to redouble our efforts to build a robust, technology-enabled logistics ecosystem that drives efficiency and helps brands thrive in an increasingly dynamic business landscape,” said Shrey Jain, co-founder and CTO of Locad.

IN NUMBERS

The startup had raised $11 million in a 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 in Southeast Asia and Australia.

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