Techtaka, a South Korean online shopping fulfillment firm that offers third-party logistics for e-commerce retailers, acquired $9.5 million (12.6 billion KRW) in a Series B investment from Altos Ventures.
Techtaka customers may concentrate on product and marketing while the company manages warehouses, order packaging, and shipping for e-commerce vendors. The firm optimizes online retailers’ supply chain and logistics via a SaaS operating system.
Software engineers Soo Young Yang (CEO) and CTO Kyung Wook Lee (CTO), who previously worked at Amazon and Coupang, founded Techtaka in May 2020. ARGO, their fulfillment service, debuted in March 2021.
Yang told Eltrys that he has personally seen how consumers value speedy delivery at e-commerce firms. He founded Techtaka to provide fast, dependable logistics services based on his logistics and optimization knowledge.
Yang said Techtaka’s next-day delivery (orders before midnight for next-day delivery) attracts people. Last July, the three-year-old firm partnered with Naver’s SmartStore, which leads South Korea’s e-commerce market with Coupang. Naver works with logistics and fulfillment businesses like Techtaka, while Coupag has its own fulfillment facilities. After working with Naver, company CFO Steve Kim told Eltrys sales and consumers rose. More than 170 South Korean consumers use it.
The company will extend its marketplace and sales channel relationships in South Korea, the U.S., and Southeast Asia. Kim said Techtaka, which has a warehouse in Seattle, has begun assisting Korean suppliers sell on Amazon and wants to link with Amazon and Shopify.
Kim said they tested their service in the U.S. by adding Korean e-commerce merchants to Amazon in May 2023. “We plan to expand this business in the U.S. as soon as we complete the Amazon partner process.”
Techtaka will use the $18 million (23.6 billion KRW) it received to improve its technology, grow its online merchant business, and add workers.
Techtaka uses AI to assess cargo trends to estimate supplies, orders, and sales. The warehouse management system and transportation management system of Argo employ AI to propose packing and routing routes. It identifies operating errors using an AI camera. Yang stated Techtaka’s optimization method saved 20% supply chain time in internal studies.
In addition, the business has collaborated with LG CNS, LG’s IT solutions department, to offer LG’s collaborative robotic service, which picks up packages for workers, to warehouses. Kim told Eltrys that Techtaka and LG CNS would create a RaaS business model to improve warehouse operations.
The business opened a 17,000-square-meter South Korean warehouse last month. It employs 76 people now. Former investors include Naver D2SF, Kakao Ventures, and Lotte Ventures.
Techtaka raises $9.5M for e-commerce fulfillment.
