Logivan, a web platform that helps trucks connect with potential customers, said it has raised $5.5 million in the latest funding round. The investment comes from two Asian angel investors and Indonesian venture capitalist Alpha JWC Ventures. One of the angel investors is David Su, a founding managing partner at private equity firm Matrix Partners China, who invested through his family office.
He said: “Vietnam is the next rising star in the growing Southeast Asia region and it is well poised to experience a similar growth trajectory as we witnessed over the past years in China.
“Vietnam’s logistics industry is highly fragmented, logistics costs make up 23 per cent of Vietnam’s GDP, with 90 per cent of trucks in Vietnam being owned by individuals. Given the success of Manbang (a Chinese truck-hailing firm), we believe that Logivan has the potential to emulate its success.”
According to e27, an online Tech media platform for Asia, Logivan will be investing in data analysis to optimize user experience, artificial intelligence, truck-matching, and pricing algorithms to minimize empty trips and in human resources.
Last year, Logivan raised $600,000 in April from Singapore-based Insignia Ventures Partners and $1.75 million in August from Singaporean private equity firms Ethos Partners and Insignia and Vietnamese investment fund VinaCapital Ventures.
It has raised a total of $7.9 million to date.
Founded in 2017 by Cambridge graduate Pham Khanh Linh, the company offers a logistics service which optimizes trucks’ routes and minimizes empty return trips.
She came up with the idea after observing that 60-70 percent of trucks in Vietnam returned empty after dropping off their loads because they could not connect with potential customers.
In 2018 Logivan claims to have connected more than 22,000 transportation partners with every major commercial truck type. It also has 10,000 shipping companies registered on its system.