Logistics startup Deliveree hauls $14.5m in series A round

Photo credit: Deliveree

Deliveree closed its series A funding round today, netting US$14.5 million to expand its presence in Southeast Asia.

Gobi Partners led the round, following up on a recent investment in Deliveree competitor GoGoVan. PSA unboXed, Asia Summit Capital, and founding investor Inspire Ventures also took part. Wavemaker Partners is also a shareholder since its July 2016 merger with Ardent Capital, which was an early investor in Deliveree.

Since launching in Bangkok in 2014, Deliveree expanded to Jakarta and Manila (where it operates under the Transportify brand), with more locations planned following the series A fundraise.

Deliveree is just one of several logistics startups battling for market share in Southeast Asia. Both hailing from Hong Kong, recently minted unicorn GoGoVan and Lalamove – which raised US$30 million in its series B round earlier this year – connect independent drivers with individuals and companies that require delivery or courier services on demand.

Singapore’s Ninja Van works along similar lines, and is currently aiming to raise as much as US$60 million in venture funding. In Indonesia, ride-hailing giant Go-Jek’s logistics offering is more competition for Deliveree; while larger players like DHL and SingPost remain very much in the mix.

First and mid-mile

Deliveree also uses a marketplace model, with around 15,000 trucks, vans, and other vehicles currently on its books. But the startup said in a statement that its sees its technology as its differentiating factor. Part of its post-series A plan is to leverage these capabilities more in the B2B space, providing its tech solutions to businesses.

While numerous startups have sought to solve the region’s “last mile” logistics problem of delivering small packages – typically purchased online – to consumers, Deliveree has increasingly turned its attention towards cargo and bulk goods challenges – or what it calls “first and mid-mile” logistics.

“Over the past few years, there has been a substantial investment in small-parcel, last-mile consumer logistics,” but the space “suffers from poor operating economics,” said Deliveree CFO Gagan Singh. The startup’s technology allows it to be “much more capital efficient and hence scalable” than some of its competitors, he added.