Pickupp, a Singapore-based on-demand delivery startup, has raised US$37 million in a Series B financing round led by Innovate Jardines, an innovation fund of diversified Asian-based group Jardine Matheson.
Other existing investors also joined, including Swire Properties, a major property developer in Hong Kong; PChome, an online shopping platform; Reefknot, a global venture capital fund powering high-growth technology-centric startup; Cathay Venture Inc., a subsidiary of Cathay Financial Holding Co., Ltd., and DRIVE Catalyst, the corporate venture arm of Far Eastern Group.
The funding will be utilised to expand Pickupp’s footprint in the Southeast Asia markets including Malaysia. Strategies include statewide coverage and a network of self-pickup and drop-off stations across Malaysia, giving consumers more accessibility, flexibility, and convenience.
“We are seeing tremendous strategic growth across industries, as businesses in Malaysia are embracing and exploring an innovative e-commerce model,” said Crystal Pang, co-founder and CEO at Pickupp.
The firm will also employ the capital to strengthen its regional logistics network infrastructure, enabling the firm to continue to develop in Quick commerce and e-commerce. This is in line with Pickupp’s plan to leverage the “logistics network as a service” model to serve the ever-changing delivery demands.
Founded in 2016, Pickupp provides “flexible”, tech-driven logistics solutions for businesses of all sizes. Customers can book a delivery anytime without sacrificing speed and cost through highly optimised batching and chaining technology, while real-time GPS tracking provides end-to-end transparency.
The firm launched Shop On Pickupp, a one-stop e-commerce platform offering all-rounded payment and tech-enabled delivery solutions for businesses in 2020.
To fulfil the changing delivery needs, Pickupp also offers a new self-drop off service. It will feature next day deliveries, no minimum order, at affordable rates where small businesses, online marketplace users, and individuals can benefit. Customers can create an order, drop off one’s parcel at any dispatch point, and avail of Pickupp’s next day delivery service with real-time GPS tracking.
“Today’s customers are looking for a more personalised and flexible logistics service, not only last-mile deliveries but next-day deliveries with no minimum order at affordable rates where customers and small businesses can enjoy a wider range of options,” said Calvin Ma, co-COO of Pickupp.
The firm is creating an ecosystem for SME and individuals in Malaysia with a network of conveniently accessible pick-up and drop-off (PUDO) sites by utilising satellite warehouses, multi-city warehouse development, and forging relationships with Kirimman and Parcelhub.
“We have taken a similar approach to warehousing, as we do to our delivery agents – we leverage existing, available resources rather than invest in developing new ones. With this nimble and efficient approach to using resources and idle capacity in the market we aim to make Pickupp the leading logistic network in Malaysia,” Ma added.
The startup claims that it has provided logistics support to more than 24,000 businesses spanning multinational corporations with a delivery team of over 100,000 delivery agents across all cities.
In Malaysia, Pickupp set its first presence in the country earlier this year with the first regional hub in Penang and the subsequent in Johor. Over 23,000 active merchants and more than 26,000 delivery agents around the country are in Pickupp’s logistics network. The firm also enjoyed a user-base growth of 94 per cent in the market, which is buoyed by partnering with 3PLs and logistics giants.
To date, the startup has operations in Hong Kong, Singapore, Malaysia, and Taiwan and provides logistics support to 20,000-plus businesses spanning MNCs, logistics giants, and retail and e-commerce. It also counts PChome and Lazada among its partners in the region.
Malaysia’s logistics industry has been benefited from the expansion of e-commerce in the country, which recorded a 17 per cent year-on-year rise in Q3 2021 income. According to a report by Modor Intelligence, the Malaysian freight and logistics market was valued at US$37.60 billion in 2020, and it is slated to reach more than US$55 billion by 2026 at a CAGR of more than four per cent during the forecast period.
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Image credit: Pickupp
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