Investors include oil and retail major OR, Krungsri Finnovate, and Durbell

Flash Express, a Thailand-based full service e-commerce logistics startup backed by Alibaba, announced today it has closed its Series D funding round of US$200 million, led by PTT Oil and Retail Business Public Company Limited (OR).

Krungsri Finnovate, Durbell (one of Thailand’s leading consumer goods distributors and a TCP Group company), as well as existing investors, also joined the round.

The proceeds from this round will be used to further invest in Flash Express’s technology and operations in the home market and also to expand into a Southeast Asian country, a spokesperson for the company said to e27, without elaborating further. 

Also Read: 5 reasons to be bullish on logistics tech in Asia

“…we are also prepared to create and develop new technologies to achieve even greater delivery and logistics efficiency. More importantly, we intend to assist SMEs in lowering their investment costs which we believe will provide long-term benefit for the overall Thai economy in the digital era,” Flash Express CEO Komsan Lee said. 

To this date, the two-year-old startup has raised roughly US$400 million in total from leading VC funds and corporations in Asia.

Founded in 2018, Flash Express entered the Thailand market as a free door-to-door pickup and delivery service 365 days a year. Recognising the pain points that customers face, the startup emphasises to use fully in-house developed technology and Big Data to standardise and digitise the delivery process. 

The startup claims it is now the second largest private express delivery provider, with over 5,000 service branches covering all 77 provinces of Thailand and delivering more than one million parcels per day. 

Best Express is the other leading player in this segment. Both Flash Express and Best Express are backed by Alibaba Group. 

Kerry Express is the other leader in the e-commerce delivery sector that filed for an IPO in late August.

Rajsuda Rangsiyakull, Senior Executive Vice President for Corporate Strategy, Innovation and Sustainability at OR, believes that this alliance will help strengthen their business expansion and investments in new S-Curve businesses.

Moreover, not only will it enhance the joint business potential in driving forward the shipping and energy industries, it will also enable the company to expand into other businesses that can meet future customer demands and suit future consumer behaviour.

Also Read: 5 growth stage startups that are leaders in Thailand’s ecosystem

TCP Group CEO Saravoot Yoovidhya stated: “This investment in Flash Express will allow Durbell to become stronger and boost its product distribution potential to cater to the future demands of the ever-growing logistics market.”

“I am confident that our two businesses will mutually complete one another’s potential and thus render us a logistics powerhouse as well as help us achieve our collective goal of helping Thailand transform into a true digital economy,” Yoovidhya added.

Krungsri Finnovate Managing Director Sam Tanskul commented: “This business alliance is a great opportunity for both organisations to create and develop new industry models. The partnership will focus on the strategic front and also support and development of strategic financial platforms for the Flash ecosystem. Moreover, thanks to enhanced ability to adapt to the world’s varying situations, the Thai people will be able to seamlessly go about their daily lives in this new world.”

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Image Credit: Flash Express

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iSeed SEA has already invested in two companies and it plans to make 20-30 deals in total, with an average cheque size of US$100K

AngelList’s India CEO Utsav Somani and its former top executive Wing Vasiksiri have joined hands together to launch a new micro-fund, targeting tech startups in Southeast Asia.

Christened iSeed SEA, the fund is an extension of iSeed India and counts a clutch of renowned investors and entrepreneurs among its backers, including Naval Ravikant (Founder & Chairman of AngelList), Kunal Bahl and Rohit Bansal (Co-founders of Snapdeal), and Jonathan Swanson (Founder & Chairman of Thumbtack).

Also Read: East Ventures forms new US$88M seed fund for startups weathering COVID-19, announces first close

“We have already hit the first close and are actively investing,” Managing Partner Vasiksiri told e27, without divulging more details. “We are sector-agnostic and primarily focusing on Indonesia, Singapore, Vietnam, and Thailand.”

So far, iSeed SEA has invested in two companies and committed to making four more investments. In total, the micro-fund plans to make 20-30 deals, with an average cheque size of US$100,000 per deal.

Knowledge Council

iSeed SEA has created a Knowledge Council of world-class operators to help its portfolio founders, said Vasiksiri. The council has Sriram Krishnan (ex-Product at Twitter), Prasanna Sankar (Co-founder of Rippling), Sahil Lavingia (Founder of Gumroad), and Anne Dwane (Founder of Village Global), amongst others. “They’ve committed to working with our portfolio founders to bring best practices from the US to India and Southeast Asia.”

Southeast Asia is emerging as the fastest-growing tech ecosystem. With a population of over 670 million across 11 countries, 13 unicorns have emerged and many more will be built in the coming years.

In Vasiksiri’s opinion, however, there are still gaps in the seed-stage tech investment industry in Southeast Asia. “Most of the seed funds that have done well in the region have moved on to raise larger funds. I believe that your fund size is your strategy and these larger funds can’t be pure seed funds anymore. They have to shift their attention and strategy to deploy larger amounts of capital in Series A rounds which is why you see this space getting more competitive.”

“You see the same pattern in the US where every four to five years a new crop of seed funds emerge. We see the same thing happening in Southeast Asia now. I believe that more capital in the ecosystem is a net positive for everyone. It allows founders to start new companies and run more experiments, innovation is driven by startups not large corporations,” he noted.

Also Read: Influx of tourist capital accelerated the pace of ups & downs of Indian startups: Utsav Somani of AngelList

iSeed SEA, claims Vasiksiri, is differentiated in a way that it is bridging the tech ecosystems of the US, India, and SEA. “In Southeast Asia, capital doesn’t always come with expertise so we want to change that and bring our network to serve founders. We want to innovate on the VC side of the ecosystem to give founders the same level of service that founders get from funds in Silicon Valley.”

To a question on how seed-stage funds have performed in the the first half of 2020 amid the COVID-19 crisis, he said. “From my perspective, seed-stage funding hasn’t seemed to have slowed down. The funds we work with are still actively investing and deals are closing. I can’t say the same for Series A and beyond rounds though, with a larger cheque, it’s hard to fund a founder you haven’t met in person so that has stalled with insiders leading bridge rounds for their portfolio to extend their runway.”

“We’re also seeing more global attention on SEA, Sequoia India raising new funds to invest in the region, Lightspeed Venture Partners officially launching their SEA practice, and even new special purpose acquisition companies (SPACs) targeting the ecosystem. Overall I think it is an exciting time and expect this momentum to continue post-COVID-19,” he concluded.

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Image credit: iSeed SEA

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ASX-listed FDV has signed an agreement to acquire Fincaraíz (Colombia), Avito (Morocco) and Tayara (Tunisia) from Adevinta

Malaysia-based Frontier Digital Ventures (FDV), which operates property and automotive marketplaces in emerging markets globally, has raised US$67 million via share placement.

The money will be used to fund the acquisition of three companies from Norwegian online classifieds major Adevinta ASA. The ASX-listed FDV has entered into agreements to acquire 100 per cent interests in Adevinta units Fincaraíz (a real-estate marketplace in Colombia), and Avito and Tayara (general classifieds portals in Morocco and Tunisia, respectively).

Following the new acquisitions, FDV’s portfolio will consist of interests in 15 online marketplace businesses active in 20 markets across Latin America, Africa and Developing Asia.

Also Read: ‘Companies shut down not because of crises but only when founders give up’: Joseph Phua of M17

FDV was founded in 2014 by Patrick Grove and Shaun Di Gregorio after they had partnered together to build iProperty Group. Grove was co-founder/chairman and Di Gregorio was Group CEO.

The Kuala Lumpur-headquartered FDV is focused online marketplaces with a particular focus on property and automotive verticals and general marketplace websites.

Since its IPO in August 2016, FDV saw its valuation increase from ~US$36 million to over ~US$360 million, an increase of ~10x.

“We learnt how to build iProperty in Malaysia and how big a property marketplace could be if you did certain things correctly. We also realised that great entrepreneurs in emerging markets neither had access to capital and mentorship nor the case studies we had. After leaving iProperty, we designed FDV to provide both financing and mentorship to these great local entrepreneurs,” said Co-founder Grove.

Also Read: 99.co acquires iProperty.com.sg, Rumah123; to assume full control of REA’s Singapore and Indonesian ops

Di Gregorio (CEO) aims to leverage the experience building iProperty into the leading property platform in Southeast Asia and replicate it in emerging markets around the world.

“It has been great to build a global business from Malaysia, with primarily Malaysian leadership. In many instances, we were one of the first internet investors in some of these markets, such as Pakistan and Myanmar. These latest acquisitions see FDV evolve into becoming a leading operator ofemerging market marketplaces,” said Gregorio.

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Image Credit: FDV

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All the latest major startup stories curated from Southeast Asia’s leading publications in a capsule format

Big Idea Ventures, Ashika Group announce first India alternative protein fund-cum-accelerator; It will back and support startups working on plant-based, fermentation-derived and cultivated meat, seafood, egg and dairy alternatives; Currently, BIV already operates a US$50M international fund and two accelerators across NY and Singapore. Green Queen

Thailand’s full service e-commerce logistics firm Flash Express raises US$200M Series D; Investors include PTT Oil and Retail Business Public Company (lead), Durbell, Krungsri Finnovate; Total funds raised so far is US$400M; The two-year-old startup has over 5K service branches, covering all 77 provinces of Thailand and delivering more than 1M parcels per day. e27

Startup funding in SEA continues decline in Q3 as pandemic rages on; According to a report, startups in the region raised ~US$1.8B in Q3, a drop of 34% q-o-q and close to 40% y-O-y; Singapore replaced Indonesia as the top destination as local startups amassed 58% of total funds raised. DealStreetAsia

Digital banking heats up in Vietnam amid COVID-19, booming e-commerce; In Q2 2020, overall visits to shopping apps reached 12.7B, growing 43% q-o-q and surpassing that of most other SEA countries, according to a report by VNExpress; In Q1 2020, e-payments rose 76% with the total value of transactions jumping 124% compared to Q1’19. Fintech News

‘Companies shut down not because of crises but only when founders give up’: Joseph Phua of M17; In this candid conversation with e27, Phua talks about his startup journey, challenges faced, lessons learned, M17’s failed IPO, and his future plans. e27

Online jewellery startup ZCOVA raises US$240K seed funding led by NEXEA; Based in Malaysia and Singapore, ZCOVA offers dual-certified diamonds at a near-wholesale price; The firm’s in-house jewellery consultants work on a zero-commission policy. Your Digital Wall

Asia’s food delivery potential is set to unlock post-COVID-19; The continent accounts for 55% of the food delivery market globally, with much more potential for growth; The penetration rate in 2020 is approximately 11.5% and is expected to exceed 15% by 2024; However, Asia markets’ diversity can prove to be the greatest challenge for sustainable growth. e27

How Gen Z’s travel behaviours are changing the way we all get around for the better; As early adopters of ride sharing and micro-mobility, their collective ‘buying power’ could’ve a positive impact on urban mobility; Mobility providers should not focus on car’s looks, speed and other form factors; instead they should focus on efficiency, sharing, sustainability and overall experience. The Next Web

Will QR payments mount a challenge in a world dominated by plastic?; A big appeal of QR payments is that it’s relatively low-cost to adopt for merchants compared to a traditional payment terminal, enabling small and even micro-entrepreneurs to accept digital payments. Fintech News

AngelList’s India CEO, former top exec launch SEA-focused micro-fund; iSeed SEA’s investors include Naval Ravikant, Kunal Bahl, Rohit Bansal, Jonathan Swanson; Key target markets are Indonesia, Singapore, Vietnam, Thailand; iSeed SEA has already invested in 2 startups and plans to invest in a total of 20-30 firms; Average cheque size is US$100K. e27

ASEAN faces wide AI gap as Vietnam and Philippines lag behind; If the region’s members pick up the pace in embracing AI, they could add nearly US$1T to the region’s GDP by 2030, says a study; While investment in AI solutions companies in the US came to US$155 per capita, the comparable figure for ASEAN was about US$2 between 2015 and 2019. Nikkei Asia Review

Singtel launches Singapore’s first 5G standalone trial network for enterprises; With its low latency and scalability, enterprises can not only drive efficiencies and make better and more cost-effective decisions but also deliver richer customer experiences; Ubitus is the first to use it for a 5G cloud gaming trial. ASEA Tech&Sec

From reactive to proactive: The shifting tides of HR; COVID-19 has caused massive disruption within the global economy and workforce; As such, organisations are scrambling to meet the demands of changing perceptions and expectations of a rapidly evolving global economy. HR Asia

Exploring the wearable health device market in SEA; As per a study, The market will register a 26.7% CAGR over the next five years; The study cites several propelling factors driving the growth, including the rate of technological advancement and innovation, as well as the increasing wealth of individuals in the region. Tech Collective Asia

SEA startups join global giants in race to tap China’s plant-based alternative meats market; There’s a big shift among China’s rising middle-class toward products that offer health and wellness; Singapore-based Green Planet is one firm that initially targets young families in their 20s and 30s in big cities in China. Yahoo Singapore

Smart tech that breaks down Singapore barriers for people with disabilities; An initiative by SG Enable, in partnership with Google, guides people with disabilities to set up a smart home ecosystem; Among them devices include smart doorbell and lighting system, which is paired with a mobile application. Malay Mail

Focus on skills, not experiences, in a changing world; A skills-based approach to work is needed to build a resilient, agile and innovative workforce of the future; Consider how a shopkeeper won’t be able to use his or her in-store sales experience when shopping malls closed during physical lockdowns, and instead had to pick up new e-commerce skills to adapt to the online retail business model. Yahoo Singapore

Vietnamese, Indian enterprises to build smart cities in Vietnam; The government defines smart cities as the basic driving force for socio-economic development across Vietnam, with more than 830 urban areas with an urbanisation rate of 38.6%. Vietnam News

Brunei startups invited to pitch at AIM Startups Competition; One startup from Brunei will be selected from the national pitch to join the Global Startups Champions League to vie for the the grand prize of US$50K; It is open to businesses with less than 50 employees, between two to seven-years-old, and with US$25K-US$1M annual revenue. Biz Brunei

5 hot tips for startups to create a strong brand from day one; Your brand is a story that translates everything about your organisation into a tangible and visible reality; When your business strategy changes, the brand also needs to be adapted; Permanently used names, logos, and basic colours will become positive assets for your brand. The Next Web

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Image Credit: Unsplash

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In case you missed it, here are what our contributors have published in the week of October 5-9, 2020

Hello,

At e27, in addition to the latest news from the Southeast Asian tech startup ecosystem, we also curate opinions from the community via the Contributor Programme. With an aim to enable thought leadership and foster networking amongst the startup and investor community in the region, the contributed articles are a great way to learn new perspectives.

Highlighting some of the top contributions from last week:

Fintech

In How bright is the future of cryptocurrency?, serial entrepreneur and Finxflo CEO James Gillingham stated: “The significance and role of cryptocurrency have expanded substantially. From mere speculation to an investment instrument -–the cryptocurrency industry is thriving. Moreover, its use cases are not restricted to financial transactions only. Instead, digital currencies with different applications in various industries have already transpired.”

Meanwhile, in the article Border-crossing and financial inclusion: The story of fintech in ASEAN, Idea Communications MD Helena Ma who had advised MNCs and startups, wrote: “Given (Singapore’s) stated intentions to support a diversified range of fintech companies, it is wise to assume that there will be an increased amount of spending on the industry and a growing set of funds available for new and maturing startups.”

Also Read: Top posts from e27 contributors to help you prepare for the new normal

Productivity

Deep work: Methods for staying productive in a distracted world by Slash CEO Andries De Vos asked the most intriguing question in the modern world: “How do some people handle stress and stay more productive than others? The answer is deep work – a process of focusing on one thing without distraction.”

User experience

How to improve your app’s user experience with a new UI modality by Ottomatias Peura stressed that: “Most of today’s user interfaces are operated solely by using two modalities– touch (tactile) and vision. We click, type, and touch and see from our displays what’s happening.”

“The third common modality is the voice and many people already have a good example of a device using this modality in their living rooms: smart speakers.”

Asia

Asia’s food delivery potential is set to unlock post-COVID-19. Here’s why by Jakob Sebastian Angele, CEO of FoodPanda APAC, revealed: “Asia’s online food delivery penetration rate in 2020 is approximately 11.5 per cent and is expected to exceed 15 per cent by 2024 – a mouth-watering potential of more than 200 million new users.”

“But not all players in the region have succeeded in tapping into this growing market. Only a handful have been successful thus far; some are still fighting for a greater share of the pie while a few others some have exited the race altogether.”

Last but not least, How these 6 Asian startups use the digital revolution for social good by founder of a marketing firm, Alex Thomas, reminded us: “Solve a problem and fix it. In the simplest sense, that’s what it comes down to. When brilliant minds sit around a table, talk on the phone, or ideate a business idea from across the globe, the inevitable beginning includes one straightforward question: What’s the problem in my neighbourhood, city, or country, and how can I fix it?”

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Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.

Join our e27 Telegram group, or like the e27 Facebook page

Image credit: Clay Banks on Unsplash

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