Thailand-based logistics startup Flash Express, which operates a door-to-door pickup and delivery service, raises $200M Series D investment.
The funding was led by PTT Oil and Retail Business Public Company Limited, of Thai conglomerate PTT. Durbell and Krungsri Finnovate, two conglomerates from Southeast Asia also participated in the round. This brings Flash Express’ to-date value to about $400 million.
Flash Express, the door-to-door pickup and delivery service, claims to be the second-largest private player in this industry. The startup, which also counts Alibaba as an investor, entered the market with delivery fees as low as 60 cents per parcel. This move allowed Flash Express to win a significant market share.
Flash Express’ Expansion
The startup has also expanded vastly in the past year. Flash Express had about 1,100 delivery points during this time last year. Now it has over 5,000, exceeding those of the 138-year-old Thailand Post.
Flash Express currently delivers over 1 million parcels a day, up from about 50,000 last year. The startup says it has also invested heavily in technology. This technology has enabled it to handle over 100,000 parcels per minute using automated sorting systems.
Komsan Lee, CEO of Flash Express, said the startup plans to deploy the fresh funds to introduce new services and expand within Southeast Asian markets. “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,” he said.
Retail Business Public Company Limited plans to leverage Flash Express’ logistics network as it looks to meet the rising demand from consumers. Flash Express competes with Best Express. Like Flash, Best Express is also backed by Alibaba and Kerry Express. Kerry Express had also filed for an initial public offering in late August.
Even as online shopping and delivery has accelerated in recent months, some estimates suggest that the overall logistics market in Thailand will see its first contraction in the history this year. Chumpol Saichuer, president of the Thai Transportation and Logistics Association, said last month Thailand’s logistics business has already been hit hard by the slowing global economy.
