TechTaka, a South Korean startup specializing in online shopping fulfillment, has recently secured $9.5 million (12.6 billion KRW) in funding from Altos Ventures in its Series B round.
The company, founded by former software engineers Soo Young Yang (CEO) and Kyung Wook Lee (CTO), aims to assist e-commerce sellers by managing their supply chain from warehousing to order fulfillment and shipping. This allows sellers to focus on their product and marketing strategies.
In addition to its logistics services, TechTaka also offers a SaaS operating system to optimize the supply chain and logistics operations of its users.
CEO Soo Young Yang, who previously worked at Amazon and Coupang, has firsthand experience in understanding the importance of fast delivery services in the e-commerce industry. His expertise and keen interest in logistics and optimization led him to establish TechTaka.
Since its launch in May 2020, the startup has already made major strides in the market with its fulfillment service, Argo, which was introduced in March 2021. Yang shared with TechCrunch that TechTaka’s partnerships with leading e-commerce marketplaces such as Naver’s SmartStore have significantly increased its revenue and customer base.
“Customers are attracted to our next-day delivery option, where orders placed before midnight can be delivered the following day,” Yang stated.
Furthermore, the company has integrated with Naver’s fulfillment service, which works closely with logistics and fulfillment companies like TechTaka, to bolster its standing in the South Korean e-commerce market. Currently, TechTaka serves over 170 customers in South Korea.
The startup plans to further expand its partnerships with other marketplaces and sales channels not only in South Korea, but also in the US and Southeast Asia. With its warehouse in Seattle, TechTaka has already started helping Korean vendors sell their products on Amazon, and has set its sights to integrate with global marketplaces such as Amazon and Shopify.
According to CFO Steve Kim, the company has tested its service in the US by introducing Korean e-commerce sellers to Amazon, with plans to officially become an Amazon partner in 2023. This will then pave the way for TechTaka to expand its business in the US.
The recent funding of $9.5 million brings the total raised by TechTaka to $18 million (23.6 billion KRW), which will be used to further develop its technology, scale its services for online merchants, and expand its workforce.
TechTaka has fully incorporated artificial intelligence into its system, allowing it to analyze shipment patterns and make predictions on stocks, sales, and orders. This AI technology is also utilized in recommending packaging options and optimizing routes for warehouses and deliveries. Additionally, it can detect operational errors through AI-powered cameras, saving users time in their supply chain process by 20%.
The startup has also partnered with LG CNS, the IT solution arm of Korean electronics giant LG, to introduce LG’s collaborative robotic service in their warehouses. This allows robots to assist workers in picking up parcels, and TechTaka plans to launch a RaaS (Robot-as-a-Service) business model in collaboration with LG CNS to further optimize warehouse operations.
With its recent expansion into a new warehouse that boasts 17,000 square meters of storage space, TechTaka currently employs 76 individuals. Its previous investors include Naver D2SF, Kakao Ventures and Lotte Ventures.
