On-demand logistics startup TheLorry scores series A for regional expansion

Malaysia-based on-demand logistics startup TheLorry today announced it raised a US$1.5 million series A round led by SPH Media Fund, with participation from Silicon Valley-based Elixir Capital.

The company intends to use this funding to strengthen its presence in Malaysia, introduce new services, and prepare for regional expansion.

Founded in September 2014, TheLorry offers on-demand cargo transportation services throughout Malaysia, connecting thousands of lorry and van owners with customers who wish to move anything – from household appliances to commercial cargo.

The way it works is pretty straightforward: individual customers just need to go to the site to book vehicles and if necessary, other extra services such as manpower, boxes, packing, and dismantling. Then jobs will be dispatched to TheLorry’s vendor app where vendors can claim on a first-come, first-serve basis.

For corporate customers, there’s a specialized product which allows them to book transportation, track drivers’ whereabouts, and receive invoices.

Recently, the company expanded into the ecommerce vertical, and has since been working with leading ecommerce vendors and retailers to deliver bulky items.

TheLorry says it earns through a commission out of every transaction. The company however refused to disclose any financial details such as revenue or transaction volume on the site.

Growing footprint

Co-founder and managing director Goh Chee Hau says the funds will be used to strengthen TheLorry’s presence in its home market, as well as for expansion into other Southeast Asian countries, with Singapore as the first. “It’s a competitive market, but having investors familiar with the Singapore market will be useful for our expansion plans,” Chee Hau notes, referring to SPH Media Fund. The S$100 million (US$69.55 million) fund is the corporate venture capital arm of Singapore Press Holdings, a media organization listed on the Singapore Stock Exchange.

There is much room for disruption in the Southeast Asian logistics space.

After Singapore, the company plans to go to Thailand next.

“The investors we chose have physical presence and strong networks in those countries, which would help us expedite entry and growth,” explains Chee Hau.

That financial backing and connections will surely come in handy as TheLorry is expected to face some serious competition from other on-demand logistics startups like GoGoVan, Lalamove, and Deliveree. The company differentiates itself by specializing only on large commercial vehicles (van, one-ton lorry, and above).

Lower costs for customers

In the meantime, TheLorry is rolling out a new service that will allow both individual and commercial customers to save on costs through consolidation and space optimization.