Delivery groups servicing remote villages in Southeast Asia weigh IPOs

IPO update

Ninja Van, a logistics group that uses motorcycles, boats and even buffalo to deliver 1.7 million parcels daily across Southeast Asia, will go public as early as next year after being worth $ 1 billion. I am considering it.

NinjaVan’s revenue and order growth has skyrocketed thanks to the e-commerce boom backed by Facebook co-founder Eduardo Saverin’s B Capital and backed by 400 million Internet users in Southeast Asia.

With 34,000 employees and 1,800 sorting stations, the seven-year-old company has been struggling to serve international courier companies to thousands of small cities and remote villages in Southeast Asia. We specialize in delivery.Despite the coronavirus Pandemic blockade, Daily shipments increased from 1m in May 2020 to 1.7m in July.

Chang Wen Lai, one of the co-founders of Ninja Van, told the Financial Times that the company is “a year” away from the IPO.

The two, familiar with Ninja Van’s plans, said they approached their advisors to start a discussion about the process. The United States is the most likely place to go public.

Ninja Van hasn’t disclosed its valuation, but one said it exceeded $ 1 billion following last year’s $ 279 million funding round. The company is almost at the break-even point and is targeting profitability in 2022.

Ninja Van driver delivers parcels to customers on Mindanao Island in the southern Philippines © Ninja Van

Ninja Van is benefiting E-commerce boom In Southeast Asia. Total sales of products sold online in the region increased 63% to $ 62 billion in 2020, according to an analysis by Google, Singapore’s state investor Temasek and consultancy Bain.

Vehicle dispatch service companies Gojek and Grab, Even Tony Fernandes’ AirAsia..

Ninja Van differentiates itself through its extensive distribution network. According to Lai, the company’s courier can deliver to the most remote parts of Southeast Asia, which most competitors do not have large-scale access to.

Ninja Van also uses technology to allow sellers to see their performance and customers to track parcels using platforms such as Facebook.

Karen Armenana, who manages Ninja Van Station in Cagayan de Oro on Mindanao Island in the southern Philippines, said deliveries have increased by 150% in the last 12 months.

Her driver delivers parcels across dirt mountains, rice fields, the sea, and even during typhoons. She said the driver once used a buffalo, a type of buffalo used to cultivate fields, to navigate tricky terrain.

Armenana added that drivers have been tested for “hand and eye adjustment” and their ability to balance luggage in unstable conditions.

Anna Manatnant, a 29-year-old influencer based in Bangkok, sells shoes and used clothing online via Instagram and the platform. ShopeeShe said that low prices and customer service were among the reasons she chose Ninja Van.

However, Jeffrey Seah, a partner at Singapore-based venture capital firm Quest Ventures, pointed to price competition as an important challenge for emerging delivery groups.

“In general, logistics is a price-competitive game. It’s an expensive battle for market share, and perhaps even a battle where the winner wins everything,” Shi said.

“Some e-commerce companies have also launched their own logistics services, partly to prevent price increases from existing players.”

Weekly newsletter

Your important guide to the billions that have been created and lost in the Asian Tech world.Exclusive news, vivid analysis, smart data, a carefully selected menu of the latest technical topics from FT and Nikkei

Sign up here with just one click

Delivery groups servicing remote villages in Southeast Asia weigh IPOs

Source link Delivery groups servicing remote villages in Southeast Asia weigh IPOs

Back to top button