Flash Express, a two-year-old logistics startup that deals with e-commerce companies in Thailand, said on Monday it has actually raised $200 million in a brand-new funding round as it wants to double down on a quickly growing market spurred by demand due to the coronavirus pandemic.
The financing, a Series D, was led by PTT Oil and Retail Business Public Company Limited, the marquee oil and retail businesses of Thai conglomerate PTT. Durbell and Krungsri Finnovate, two other top corporations in the Southeast Asian country, likewise participated in the round, which brings Flash Express’ to-date raise to about $400 million.
Flash Express, which operates door-to-door pickup and delivery service, declares to be the 2nd biggest personal player to operate in this space. The start-up, which likewise counts Alibaba as a financier, entered the marketplace with delivery charges as low as 60 cents per parcel, a move that allowed it to quickly win a considerable market share.
The startup has actually likewise broadened strongly in the previous year. Flash Express had about 1,100 shipment points during this time last year. Now it has more than 5,000, going beyond those of 138-year-old Thailand Post.
Flash Express currently delivers more than 1 million parcels a day, up from about 50,000 during the very same time last year. The startup states it has actually also invested heavily in technology that has enabled it to deal with over 100,000 parcels in a minute by completely automated arranging systems.
Komsan Lee, CEO of Flash Express, said the start-up prepares to deploy the fresh funds to present new services and broaden to other Southeast Asian markets (names of which he did not determine). “We are also prepared to produce and develop new technologies to accomplish even greater delivery and logistics performance. More notably we mean to help SMEs in lowering their financial investment expenses which we believe will provide long-lasting benefit for the total Thai economy in the digital period,” he stated.
Retail Service Public Company Limited plans to utilize Flash Express’ logistics network as it seeks to satisfy the increasing need from consumers, stated Rajsuda Rangsiyakull, senior executive vice president for Business Strategy, Innovation and Sustainability at Retail Company Public Company Limited.
Flash Express competes with Finest Express– which, like Flash, is also backed by Alibaba– and Kerry Express, which filed for an initial public offering in late August.
Even as online shopping and shipment has actually sped up in current months, some quotes suggest that the general logistics market in Thailand will see its very first contraction in the history this year. Chumpol Saichuer, president of the Thai Transportation and Logistics Association, stated last month Thailand’s logistics business has actually already been struck hard by the slowing international economy.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.