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Miguel Cordon · · 5 min readAirAsia’s logistics arm eyes raising up to $100m to cover more ground and air
Logistics is booming in Asia. It was already one of fastest-growing markets in the region prior to Covid-19, but it still received a boost from the increased online spending brought about by the pandemic.
A recent McKinsey & Company report noted that Asia is set to account for 57% of the growth of the global ecommerce logistics market between last year and 2025. This means that the region’s logistics opportunity is still largely up for grabs.
Photo credit: Teleport
One such company looking to gain a firm foothold in the industry is Teleport, the express delivery offering of Malaysian budget airline and super-app hopeful AirAsia.
See also: Does the dawn of in-house ecommerce delivery threaten third-party logistics firms?
To do so, the company is looking to boost its war chest by attracting outside investment, which would be its first external funding round after being seed-funded by AirAsia Digital, to date.
Preparing for takeoff
Pete Chareonwongsak, CEO of Teleport, told Tech in Asia that the company’s looking to raise somewhere between US$50 million to US$100 million. Teleport’s plan was first revealed on Tech in Asia’s list of fundraising startups.
The chief executive said that Teleport is in talks with potential investors, with concrete details yet to be finalized.
Chareonwongsak added that the company plans to expand its delivery business regionally with the new capital. Teleport currently has a presence across 86 cities and five countries. It also has six dedicated cargo freighter aircraft to bolster its intra-Asia logistics network.
Pete Chareonwongsak, CEO of Teleport / Photo credit: Teleport
Chareonwongsak said Teleport aims to chart its Asian expansion through a four-pronged approach.
1. Expansion of cargo services: This includes connecting all 232 cities in Southeast Asia through its cargo services, which involves moving big shipments internationally or domestically through land and air.
As part of the greater AirAsia ecosystem, Teleport has a head start with access to a network of 86 cities across the region. It now aims to connect to the remaining 146 cities outside its network.
Cooling its jets amid Covid-19
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This would be Teleport’s first external fundraising round.
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