E-commerce logistics startup becomes Thailand’s first unicorn

Thailand’s logistics services provider for e-commerce, Flash Group, after successful funding rounds has become the country’s first unicorn, a label for startups with a valuation of $1 billion or more.

The Alibaba-backed company, best known for its delivery service Flash Express, recently raised a cumulative $150 million from its series D and E rounds, driving its valuation beyond $1 billion

Among the investors were the corporate venture capital division of Thailand’s Siam Commercial Bank, as well as PTT Oil and Retail, the Krungsri Finnovate fund of Bank of Ayudhya and Thailand’s Chan Wanich Security Printing Company, among others.

The company in October last year raised $200 million in a series D round led by PTT Oil and Retail to add more service offerings and further expand into Southeast Asian markets then to other markets globally.

Daily parcel volume crosses two million

The latest fund raising comes after the company reached a milestone of a peak daily parcel volume of two million units. It accomplished this through its core express delivery service Flash Express and its warehousing and fulfillment arm Flash Fulfillment.

Apart from expanding, the company also wants to use the fresh funds to bolster its domestic operations and invest in technology development.

It has set out an ambitious plan to rank in the top three in the logistics business in Southeast Asia within the next five years, with Thailand serving as a regional logistics hub.

A unicorn after just three years

Flash Group was founded in 2018 by young Thai businessman Komsan Lee, 29, with a capital of 400 million baht ($12.8 million) provided by Alibaba and two other Chinese venture capital funds “at the right time in the right industry where market size is big enough,” as he puts it.

With an aggressive price strategy undercutting existing players’ delivery fees by more than a half and outsourced Chinese portal developers, the group grew quickly to a serious market player.

By the end of this year, the number of employees is expected to rise to 40,000 from currently 30,000, with 70 per cent being delivery staff.

The company further plans to launch an online payment and lending business and offer drop-off and pick-up stores across Thailand in cooperation with petrol station operator PTT Oil and Retail.

Eventually, Flash Group plans to follow its competitor Kerry Express in staging an initial public offering at the Stock Exchange of Thailand.



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Thailand’s logistics services provider for e-commerce, Flash Group, after successful funding rounds has become the country’s first unicorn, a label for startups with a valuation of $1 billion or more. The Alibaba-backed company, best known for its delivery service Flash Express, recently raised a cumulative $150 million from its series D and E rounds, driving its valuation beyond $1 billion Among the investors were the corporate venture capital division of Thailand’s Siam Commercial Bank, as well as PTT Oil and Retail, the Krungsri Finnovate fund of Bank of Ayudhya and Thailand’s Chan Wanich Security Printing Company, among others. The company...

Thailand’s logistics services provider for e-commerce, Flash Group, after successful funding rounds has become the country’s first unicorn, a label for startups with a valuation of $1 billion or more.

The Alibaba-backed company, best known for its delivery service Flash Express, recently raised a cumulative $150 million from its series D and E rounds, driving its valuation beyond $1 billion

Among the investors were the corporate venture capital division of Thailand’s Siam Commercial Bank, as well as PTT Oil and Retail, the Krungsri Finnovate fund of Bank of Ayudhya and Thailand’s Chan Wanich Security Printing Company, among others.

The company in October last year raised $200 million in a series D round led by PTT Oil and Retail to add more service offerings and further expand into Southeast Asian markets then to other markets globally.

Daily parcel volume crosses two million

The latest fund raising comes after the company reached a milestone of a peak daily parcel volume of two million units. It accomplished this through its core express delivery service Flash Express and its warehousing and fulfillment arm Flash Fulfillment.

Apart from expanding, the company also wants to use the fresh funds to bolster its domestic operations and invest in technology development.

It has set out an ambitious plan to rank in the top three in the logistics business in Southeast Asia within the next five years, with Thailand serving as a regional logistics hub.

A unicorn after just three years

Flash Group was founded in 2018 by young Thai businessman Komsan Lee, 29, with a capital of 400 million baht ($12.8 million) provided by Alibaba and two other Chinese venture capital funds “at the right time in the right industry where market size is big enough,” as he puts it.

With an aggressive price strategy undercutting existing players’ delivery fees by more than a half and outsourced Chinese portal developers, the group grew quickly to a serious market player.

By the end of this year, the number of employees is expected to rise to 40,000 from currently 30,000, with 70 per cent being delivery staff.

The company further plans to launch an online payment and lending business and offer drop-off and pick-up stores across Thailand in cooperation with petrol station operator PTT Oil and Retail.

Eventually, Flash Group plans to follow its competitor Kerry Express in staging an initial public offering at the Stock Exchange of Thailand.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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