In the logistics sector based on AI, Korean startup Fassto is racing ahead with its advanced technology that integrates fulfillment requirements with digital logistics. The AI logistics platform company has attracted 80 billion won ($65 million) of Series C investment. In this investment, private equity funds VIG Partners and Hana Ventures participated as new investors, and existing investors SK D&D, Shinhan Venture Investment, and KDB Development Bank also made follow-up investments.
Fassto’s centers recognized by government body
Fassto has its own AI and big data-based Fulfilment Management System (FMS) and IT competitiveness such as a warehouse control system (WCS). In addition, among the fulfillment companies, Yongin 1 Center received first-grade certification for the first smart logistics center by the Korean Ministry of Land, Infrastructure and Transport last year. Fassto’s Yongin 2 Center also received grade 1 certification consecutively, and the scalability of the mega center is highly evaluated.
In particular, after the opening of Yongin 1 Center with an area of 13,000 pyeong last year, sales in the second half of the year doubled compared to the first half. In a situation where the fulfillment market is growing rapidly, the cumulative number of members exceeded 10,000 last month. This was also an important factor in attracting this investment.
With this investment attraction, Fassto has laid the groundwork to solidify its position in the domestic fulfillment market in terms of scale by expanding CAPA (processing capacity) and diversifying services. In addition, through aggressive R&D investment, such as recruiting additional IT planners and developers, it was possible to speed up the expansion of the skill gap.
Fassto CEO Hong Jong-wook said, “We have been working hard to make AI-based smart fulfillment service a standardized service that anyone can use at a reasonable cost, and it is bearing fruit. We will continue to expand our fulfillment center and upgrade our services so that more online sellers can use Pasto.” He continued, “I am sure that VIG Partners, who leads investment in the consumer goods distribution sector, highly evaluated Fassto’s growth potential and selected it as the first growth financial investment target.”
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