Southeast Asians, Meet Thailand's Very First Unicorn
Thailand-based Flash Group, a logistics startup also known as Flash Express, announced this week it has raised $150 million in a Series D extension and Series E round.
While the company has not disclosed the exact post-money valuation, it claims to be valued at over $1 billion to become Thailand’s first unicorn, according to a Reuters report.
In October, Flash Group had raised $200 million in its first Series D round. The startup’s Series D extension was led by SCB10X, the venture capital arm of Siam Commercial Bank, with participation from the Chanwanich Security Printing Co.
Flash Group’s Series E round was led by Buer Capital, with participation from SCB10X, PTT Oil and Retail, Alibaba-backed eWTP Capital, TCP Group’s Durbell, Krungsri Finnovate and the Chanwanich Security Printing Co.
The company has raised a total of $550 million to date.
Flash Group’s aggressive strategy
Started in 2018, the company is now handling up to 2 million items a day and aims to become one of the largest logistics companies in Southeast Asia, making Thailand the region’s logistics hub, according to reports.
Flash Express entered the market with an aggressive pricing strategy, lowering the average delivery fee of 60 baht ($1.92) to 25 baht (80 cents), made possible by its technology that helps choose the most optimal delivery process.
Flash Groups’ fully loaded, free technology suite, Flash Radar, allows online merchants an analytical view of their sales, the ability to manage inventory and print labels with Flash Printer or portable Flash Toy and deliver a positive customer experience that has consumers coming back for repeat purchases.
Between Flash Express and Flash Home, the company’s franchise program, Flash Group has over 14,000 locations and drop-off points throughout Thailand.
Earlier this year, the company announced three additional services: zero return delivery fees, an increase of insurance on goods valued up to 2,000 baht ($65.08) and guaranteed delivery services.
The future of Flash
Flash Group has big plans after its most recent raise.
Flash Express currently has 30,000 employees and aims to increase that by 10,000 by the end of the year, with 70% of employees carrying out the delivery services. It also hopes to begin delivering items weighing more than 441 pounds.
Flash Group plans on launching Flash Pay, a financial service for online lending and payments that will be located at PTT Oil and Retail gas stations.
The company aims to increase its domestic market share to over 500 billion baht ($16 billion) and begin to expand across borders in Southeast Asia.
Flash Group has not specified a timeline for expanding beyond Thailand.
Once the company has made its international debut, CEO Komsan Lee will look to take the company public, according to reports.
Source: Bangkok Post