Flash Specific, a two-year-old logistics startup that works with e-commerce companies in Thailand, stated on Monday it has raised $200 million in a brand new financing spherical because it appears to be like to double down on a quickly rising market spurred by demand as a result of coronavirus pandemic.
The funding, a Sequence D, was led by PTT Oil and Retail Enterprise Public Firm Restricted, the marquee oil and retail companies of Thai state-run conglomerate PTT. Durbell and Krungsri Finnovate, two different prime conglomerates within the Southeast Asian nation, additionally participated within the spherical, which brings Flash Specific’ to-date elevate to about $400 million.
Flash Express, which operates door-to-door pickup and supply service, claims to be the second largest non-public participant to function on this house. The startup, which additionally counts Alibaba as an investor, entered the market with supply charges as little as 60 cents per parcel, a transfer that allowed it to rapidly win a big market share.
The startup has additionally expanded aggressively previously yr. Flash Specific had about 1,100 supply factors throughout this time final yr. Now it has over 5,000, exceeding these of 138-year-old Thailand Submit.
Flash Specific at present delivers greater than 1 million parcels a day, up from about 50,000 throughout the identical time final yr. The startup says it has additionally invested closely in expertise that has enabled it to deal with over 100,000 parcels in a minute by totally automated sorting techniques.
Komsan Lee, CEO of Flash Specific, stated the startup plans to deploy the recent funds to introduce new providers and broaden to different Southeast Asian markets (names of which he didn’t establish). “We’re additionally ready to create and develop new applied sciences to realize even better supply and logistics effectivity. Extra importantly we intend to help SMEs in reducing their funding prices which we consider will present long-term profit for the general Thai financial system within the digital period,” he stated.
Retail Enterprise Public Firm Restricted plans to leverage Flash Specific’ logistics community because it appears to be like to fulfill the demand from shoppers, stated Rajsuda Rangsiyakull, Senior Govt Vice President for Company Technique, Innovation and Sustainability at Retail Enterprise Public Firm Restricted.
Flash Specific competes with Finest Specific — which, like Flash, can be backed by Alibaba — and Kerry Specific, which filed for an preliminary public providing in late August.
At the same time as on-line buying and supply has accelerated in current months, some estimates suggest that the general logistics market will see its first contraction within the historical past this yr. Chumpol Saichuer, president of the Thai Transportation and Logistics Affiliation, stated final month Thailand’s logistics enterprise has already been hit onerous by the slowing international financial system.
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