TechTaka, a South Korean online shopping fulfillment startup that offers third-party logistics services for e-commerce sellers, has secured $9.5 million (12.6 billion KRW) in a Series B funding round from a single investor, Altos Ventures.
The company assists e-commerce sellers in managing their supply chain, including warehousing, order packing, and shipping, allowing users to focus on product and marketing. Additionally, TechTaka provides a SaaS operating system to optimize online vendors’ supply chain and logistics operations.
Co-founded by Soo Young Yang (CEO), a former software engineer at Amazon and Coupang, and Kyung Wook Lee (CTO), who previously worked at Coupang, TechTaka was launched in May 2020 with its fulfillment service, called Argo. Yang stated that his firsthand experience at e-commerce giants highlighted the importance of fast delivery services to customers, spurring his interest in logistics and optimization and leading him to start TechTaka to offer quick and reliable logistics services.
TechTaka offers next-day delivery, which is a key factor in attracting customers, according to Yang. Since July last year, the startup has integrated with Naver’s SmartStore, a leader in South Korea’s e-commerce market. This integration significantly increased the company’s performance in terms of revenues and customers. It currently serves more than 170 customers in South Korea.
The company plans to expand its partnerships with marketplaces and sales channels, not only in South Korea but also in the U.S. and Southeast Asia. TechTaka, which has a warehouse in Seattle, is assisting Korean vendors in selling their products on platforms like Amazon and Shopify and aims to integrate with global marketplaces.
The recent funding, bringing its total raised to $18 million (23.6 billion KRW), will enable TechTaka to advance its technology, scale its service for online merchants, and hire staff.
The company has also incorporated artificial intelligence into its system to analyze shipment patterns, predict stocks, orders, and sales, and optimize warehouse and transportation management. Argo’s AI technology has improved the company’s supply chain process by 20%. Additionally, TechTaka is partnering with LG CNS to launch a Robot-as-a-Service business model for warehouse optimization.
Earlier this month, the startup set up a warehouse representing 17,000 square meters of storage space in South Korea and currently has 76 employees. Its previous backers include Naver D2SF, Kakao Ventures, and Lotte Ventures.
