Flash Categorical, a two-year-old logistics startup that works with e-commerce corporations in Thailand, mentioned on Monday it has raised $200 million in a brand new financing spherical because it appears to double down on a quickly rising market spurred by demand because of the 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 conglomerate PTT. Durbell and Krungsri Finnovate, two different high conglomerates within the Southeast Asian nation, additionally participated within the spherical, which brings Flash Categorical’ to-date increase 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 area. 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 shortly win a big market share.
The startup has additionally expanded aggressively prior to now yr. Flash Categorical had about 1,100 supply factors throughout this time final yr. Now it has over 5,000, exceeding these of 138-year-old Thailand Publish.
Flash Categorical at the moment 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 know-how that has enabled it to deal with over 100,000 parcels in a minute by absolutely automated sorting techniques.
Komsan Lee, CEO of Flash Categorical, mentioned the startup plans to deploy the recent funds to introduce new companies and develop to different Southeast Asian markets (names of which he didn’t establish). “We’re additionally ready to create and develop new applied sciences to attain even better supply and logistics effectivity. Extra importantly we intend to help SMEs in decreasing their funding prices which we consider will present long-term profit for the general Thai economic system within the digital period,” he mentioned.
Retail Enterprise Public Firm Restricted plans to leverage Flash Categorical’ logistics community because it appears to fulfill the rising demand from customers, mentioned Rajsuda Rangsiyakull, Senior Govt Vice President for Company Technique, Innovation and Sustainability at Retail Enterprise Public Firm Restricted.
Flash Categorical competes with Finest Categorical — which, like Flash, can be backed by Alibaba — and Kerry Categorical, which filed for an preliminary public providing in late August.
Whilst on-line procuring and supply has accelerated in current months, some estimates suggest that the general logistics market in Thailand will see its first contraction within the historical past this yr. Chumpol Saichuer, president of the Thai Transportation and Logistics Affiliation, mentioned final month Thailand’s logistics enterprise has already been hit onerous by the slowing world economic system.