Delivery startup raises $12 mln from Alibaba-backed fund
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Delivery startup Loship has raised $12 million from a consortium co-led by an Alibaba-backed investment fund. The lead investors are BAce Capital, which counts Ant Financial of Jack Ma as its largest limited partner, and Hong Kong investment firm Sun Hung Kai & Co.
Loship plans to use the money to increase its presence in five main areas, including Ho Chi Minh City, Hanoi and Da Nang. It hopes to sign up 10 percent of the country’s population in the next two years and to have a presence in 10 localities.
Loship CEO Nguyen Hoang Trung said that the company eyes top spot in the one-hour delivery segment. One-hour delivery is not as popular yet in Vietnam as in the U.S., Europe or China, he said. Loship’s aim is to deliver everything quickly to customers, including vegetables, meat and cosmetics, he said.
Its challenges include delivery quality the fact that new competitors are set to enter the market including e-commerce platforms that could develop their own delivery units, he said.
“All strategies can be easily copied and the only way to deal with this is for us to go faster than our competitors.”
Loship was established in 2017 by transforming Lozi, a food recommendation platform.
It has over 70,000 drivers and 200,000 seller-partners, and nearly two million customers, it said.
Questions & Answers
Q.What are Loship's main goals for expanding its operations with the new funding?
What are Loship's main goals for expanding its operations with the new funding?
Loship plans to use the investment to grow its presence in five key areas, including major cities like Ho Chi Minh City, Hanoi, and Da Nang. The company aims to operate in 10 localities and sign up 10 percent of the country's population within two years.
Q.What challenges does Loship anticipate in achieving its ambitious expansion goals?
What challenges does Loship anticipate in achieving its ambitious expansion goals?
Loship expects challenges related to maintaining delivery quality and facing new competitors. E-commerce platforms developing their own delivery units are also a potential threat, requiring Loship to move quickly to stay ahead.
Q.Which entities co-led the $12 million investment round for Loship?
Which entities co-led the $12 million investment round for Loship?
The investment round was co-led by BAce Capital, an Alibaba-backed fund with Ant Financial as its largest limited partner, and the Hong Kong investment firm Sun Hung Kai & Co. These entities provided the $12 million in funding.
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