GIZTIX, a Thailand-based digital platform for e-logistics, announces to have secured US$10 million in a Series B funding round co-led by WHA Group, a fully-integrated logistics and industrial facilities solutions corporation in Thailand, and Bualuang Ventures, a subsidiary of Bangkok Bank.
Other investors include Thai conglomerate Siam Cement Group (SCG)’s corporate venture capital arm AddVentures, and Japan’s ventures capital firms KK fund and CAC Capital.
GIZTIX plans to deploy the fresh capital to develop a comprehensive range of transportation services and technologies for businesses nationwide.
A portion of the funding will be allocated to boost marketing and sales to help distribute income to transport operators in every province.
The firm also intends to invest in management and technology to maintain profitability in parallel with business expansion, aiming for a listing on the Stock Exchange of Thailand in 2025 or in the next four years.
The startup told e27 that GIZTIX has plans to scale internationally with collaborations from major partners.
“KK Fund and CAC Capital fully support us on collaborating Japanese enterprises and capital acquisition especially for next round funding,” said Sittisak Wongsomnuk, CEO and co-founder of GIZTIX.
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Wongsomnuk also stressed that the involvement of WHA Group, Bangkok Bank and SCG in the round enabled the firm to better digitise local logistics operators to meet the demand of the country as a logistics hub of the region.
“To truly win, we need local dominant players to contribute, that’s why GIZTIX has raised funds from Thai listed enterprises,” added Wongsomnuk. “The investors have the same goal is to digitise Thai Logistics infrastructure so the country can have a commercial advantage in the long-term.”
He also did not exclude the possibility of acquisition from big corporations. “The matter is how much value we can build together.”
Founded in 2015, GIZTIX is an e-logistics startup offering on-demand logistics services and fleet management tools for business customers. Its transport management system (TMS) helps clients with delivery service outsourcing and also manage owned trucks at the same time.
GIZTIX’s e-logistics infrastructure allows clients to manage logistics activities on one platform, reduce paperwork, and increase delivery visibility. The firm claims that its commercial clients have saved 10-30 per cent on logistics costs due to damage and claim elimination while ensuring on-time delivery.
The firm also offers a comprehensive set of services tailored for corporate clients’ needs, while remaining in the background with technical support.
“The road transport business in Thailand is worth more than 19 billion US dollars a year and there is a huge opportunity to grow further as Thailand is also a strategic hub for transportation and logistics in the region,” said Wongsomnuk. “Unfortunately, businesses in the logistic sector still lack digital systems that will connect data and provide real-time communications.”
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He added that the majority of the cargo processed on GIZTIX is “bulky,” ranging in size from a television box to a 40-foot container. The firm considers this market segment as less competitive and decides to leverage it as a unique selling point.
“There are many foreign players that have come to take huge market share in Thailand, all of them are competing on parcel deliveries for social sellers, but GIZTIX is not,” said Wongsomnuk.
Driven by the pandemic-induced demand for digital transformation, GIZTIX boasted that the number of transportation trips processed through the platform has expanded by more than 420 per cent, amounting to more than 500,000 transportation trips each year.
To date, there are about 3,000 DAU vehicles and 50,000 shipments managed on the platform each month.
Thailand’s logistics costs are calculated at US$62 billion (14 per cent of the GDP), with three major cost factors including transportation (50 per cent), inventory (40 per cent), and management (10 per cent), according to the National Economic and Social Development Council.
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Image Credit: GIZTIX
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