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Deliveree raises $70M Series C to improve SE Asia’s logistics industry

Deliveree raises $70M Series C to improve SE Asia’s logistics industry

Deliveree, a leading logistics platform based in Southeast Asia, has reportedly raised more than $70 million through a Series C round to smooth out the relatively bumpy logistics landscape in Southeast Asia.

As per reports, the round was led by SPIL Ventures and Gobi Partners, with participation from Inspire Ventures, which is one of company’s returning invertors. The Series C brings the overall funding raised by the company so far to nearly $109 million, which first opened its doors in 2015.

Across a large portion of Southeast Asia, logistics is not only challenging but also expensive. Deliveree hopes to address this issue with a system that enables customers to book trucks while employing algorithms to find the optimum path depending on location, transportation loads, and the weather.

According to Tom Kim, CEO and founder of Deliveree, the high cost of logistics results in higher prices paid by consumers.

The company stated that over the past 2 years, there has been a 3.2x growth in its gross transaction value, which is pegged to surpass $100 million by the end of 2022. The firm currently employs over 500 people, and boasts of more than 100,000 registered drivers on its platform.

As of now, Deliveree is available in countries like the Philippines, Thailand, and Indonesia. It largely focuses on big trucks that transport large items or heavy commercial goods.

As per Kim, a Google analytics assessment suggest that the firm is searched more often than the rest of the logistics firms in the region. These include brands such as Go Box, Logisly, Waresix, and Cargo Tech.

Kim further added that Indonesia, where numerous logistics firms like Waresix, have obtained funding, is the most fiercely competitive avenue in the region.

One key issue that Deliveree addresses is the ineffective utilization of trucks, i.e., trucks that transport cargo one-way and then come back empty to the warehouses. The firm does so by letting firms book these returning trucks to transport goods on the way back.

Kim stated that before Deliveree, a 40% to 50% utilization rate was regarded as above average. However, through Deliveree's marketplace, trucks can now operate at up to an 80% utilization rate. All owing to the firm’s five year old, internally-generated data set,

With the help of Deliveree's algorithms’ ability to foresee loading and waiting periods, warehouses can significantly reduce the length of waiting queues at the loading areas.

Deliveree makes money by charging customers a fee while booking truck(s) and splitting the amount with the respective carriers. The company’s standard split ratio is about 80% to the independent trucking firm, and 20% to itself as commission.

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Omkar Patwardhan

Omkar Patwardhan started his professional career in the hospitality industry. Having nurtured a deep-sated passion for words however, he found his way into content writing and now pens down articles for numerous websites, including News Origins, spanning the sectors of business, finance, and technology.