Flash Express, a two-year logistics startup working with e-commerce companies in Thailand, said on Monday it raised $ 200 million in a new funding round as it seeks to double down on a fast-growing market spurred by demand due to of the coronavirus pandemic.
The financing, a Series D, was led by PTT Oil and Retail Business Public Company Limited, the marquee oil sector and retail operations of the Thai conglomerate PTT. Durbell and Krungsri Finnovate, two other major conglomerates in the Southeast Asian country, also participated in the round, bringing the Flash Express relaunch to approximately $ 400 million.
Flash Express, which operates the door-to-door collection and delivery service, claims to be the second largest private operator to operate in this space. The startup, which also considers Alibaba as an investor, entered the market with delivery fees as low as 60 cents per package, a move that allowed it to quickly gain significant market share.
The startup has also aggressively expanded over the past year. Flash Express had approximately 1,100 delivery points during this period last year. It now has over 5,000, surpassing those of Thailand Post's 138 years.
Flash Express currently delivers more than 1 million packages per day, up from around 50,000 in the same period last year. The startup says it has also invested heavily in technology that has enabled it to handle over 100,000 packages in one minute via fully automated sorting systems.
Komsan Lee, CEO of Flash Express, said the startup plans to distribute the new funds to introduce new services and expand into other Southeast Asian markets (names it hasn't identified). "We are also ready to create and develop new technologies to achieve even greater delivery and logistics efficiency. More importantly, we intend to help SMEs reduce investment costs which we believe will provide long-term benefits for the Thai economy at large in the digital age, "he said.
Retail Business Public Company Limited plans to leverage Flash Express's logistics network to meet growing consumer demand, said Rajsuda Rangsiyakull, Senior Executive Vice President for Business Strategy, Innovation and Sustainability at Retail Business Public Company Limited.
Flash Express competes with Best Express - which, like Flash, is also supported by Alibaba - and Kerry Express, which submitted an initial public offering in late August.
While online shopping and deliveries have accelerated in recent months, some estimates suggest that the global logistics market in Thailand will see its first contraction in history this year. Chumpol Saichuer, president of the Thai Transportation and Logistics Association, said Thailand's logistics business was already hit hard by the global economic slowdown last month.