Vietnamese logistics startup raises $5.5 mln in latest funding round
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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.
Questions & Answers
Q.Who were the main investors in Logivan's most recent funding round?
Who were the main investors in Logivan's most recent funding round?
The latest investment came from Indonesian venture capitalist Alpha JWC Ventures and two Asian angel investors. One angel investor was David Su, a founding managing partner at Matrix Partners China, who invested via his family office.
Q.What problems in Vietnam's logistics industry does Logivan aim to address?
What problems in Vietnam's logistics industry does Logivan aim to address?
Logivan aims to tackle the highly fragmented logistics industry where costs make up 23% of Vietnam's GDP. It also addresses the issue of 90% of trucks being individually owned, leading to 60-70% empty return trips.
Q.How will Logivan use the capital raised in this latest funding round?
How will Logivan use the capital raised in this latest funding round?
The capital will be invested in data analysis, artificial intelligence, and pricing algorithms to optimize user experience and minimise empty trips. Logivan plans to invest in human resources.
Q.What is Logivan's total funding to date, including this latest round?
What is Logivan's total funding to date, including this latest round?
Including the latest $5.5 million round, Logivan has raised a total of $7.9 million to date. Previous investments included $600,000 in April last year and $1.75 million in August of the same year.
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