Singapore logistics firm Ninja Van raises over $87m in record-breaking funding

Ninja Van, a Singapore-headquartered logistics company with a regional presence, has raised at least US$87 million in funding, making it one of the most well-funded logistics startups in Southeast Asia, according to Tech in Asia’s data. The series C round is also one of the largest in the region’s history.

Joining the latest round is DPDgroup, a European parcel delivery firm which claims to deliver 4 million parcels a day. Its logistics expertise could come in handy in helping Ninja Van improve its services.

Ninja Logistics, the startup’s registered Singapore entity, made US$9.1 million in revenue and lost US$8.7 million in 2016. Its revenue more than doubled from the previous year while its losses tripled. However, this is typical of startups that are raising significant funding to invest in growth. What’s important is whether it can convert its investments into future revenue.

The founders’ ownership of the company seems low relative to other startups at a similar stage. Carousell’s CEO, for example, owns 11% of the company after the series C round.

The company’s 2017 financial figures are not available. However, it says that it delivers millions of parcels a month through its fleet and hundreds of drop-off points across the region.

It has over a thousand employees, including delivery personnel, and serves clients like Alibaba-owned ecommerce marketplace Lazada. The startup will use the new funding to expand its technology team and expand its cross-border business.

Ninja Van was founded in 2014 by Lai Chang Wen, who turned down a scholarship to venture into entrepreneurship. He had zero knowledge of logistics then, and had to learn everything from scratch. The startup is now in Singapore, Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Record-breaker

Assuming that Ninja Van’s series C round is over US$87 million, it would be one of the biggest raised by a Southeast Asian startup so far, Tech in Asia’s data shows.

On an Asia-wide scale, Ninja Van’s hefty funding is in line with what logistics startups typically raise. “The business model is typically asset-heavy, requiring hefty upfront investment to build out its logistics network and fleet. Ninja Van’s initial losses in 2016 is not a surprise, while its doubling revenue indicates growing scale. What’s important in the near term is a sustainable cash-burn rate against scale growth,” says Lawrence Cheok, senior research manager at IDC.

Lalamove, a Hong Kong headquartered on-demand logistics startup serving small and medium enterprises, has raised US$100 million in series C funding last year.