Shoot for the moon and you’ll land among the stars. In an attempt to validate the saying, logistics platform Yojee (ASX: YOJ) has been star—a.k.a. strategy—hopping, hoping it edges closer to the moon. The Company has launched a Partner Program to boost its profitable client portfolio and the latest addition is an agreement with Cargo Compass SA in South Africa.
Cargo Compass SA is one of the largest full service South African clearing and freight forwarders with warehousing solutions. Yojee’s Platform will be used across all business segments (import/export/domestic) for the whole of South Africa, where it has five operating branches. The agreement is the result of Yojee’s late 2022 initiated Partner Program marking its second customer through the Partner Program.
The Partner Program offers key Systems Integrators the ability to introduce and add Yojee to organisations working with products like SAP, Oracle and Wisetech’s Cargowise One platform to extend visibility and productivity into landside transport.
Yojee Managing Director Ed Clarke said, “We are delighted to share that we will be working with Cargo Compass South Africa. This is a significant milestone that exemplifies our position as the leading solution for cross border platforms into the land transport market.
“Our partnership with Cargo Compass South Africa not only taps into a leading and rapidly growing business but also expands our presence into a new country. This early vindication of our new strategy showcases our team’s efficiency and the value we bring.
“Together with our partner network, we are simplifying landside transport, enabling businesses to digitise, standardise and thrive in the dynamic global marketplace. This collaboration marks an exciting chapter for Yojee, as we continue to drive innovation and excellence for enterprises and we expect more of these to follow.”
Yojee is a cloud-based software as a service, enabling logistical support for freight transportation in the Asia-Pacific region. In H1 FY23, the Company suffered a net loss increase of 16% on H1 FY22, with its cash equivalents falling from $15.3 million in H1 FY22 to only $6.3 million in H1 FY23. To address the excessive cash burn, in December 2022, the Company announced that it will be adopting a new strategy: “profitability at the expense of growth”.
In that spirit, it shed its Small Medium Enterprise customer base for high gross margin enterprises that bringing in the money stat. It also saw a bunch of resignations, including Rob van Es who joined Yojee’s Advisory Board in August 2020, Lynn Mickleburgh who joined Yojee’s Advisory Board in April 2019, and its Non-executive Director Gary Flowers will retire from his position and join on the Advisory Board. In Q3 FY23, its revenue declined by 12% compared to Q3 FY22, and it implemented a 30%-100% increase in transactional pricing.
Clarke concluded, “Working in a simplified enterprise approach and a usage based model should support more rapid adoption and transactional volume growth, building our position as a market leader. Winning the competitive process against six other contenders further validates the quality and uniqueness of our solution.”
Alinda is a Business Reporter for The Sentiment
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