On Oct, 12nd, Flash Express, a Thailand-based full service e-commerce logistics provider, announced that it has completed Series D funding round of US$200M, led by PTT Oil and Retail Business Public Company Limited (OR) with participation from Durbell and Krungsri Finnovate, three of Thailand’s most prominent conglomerates, as well as existing investors. To this date, Flash Express has raised roughly US$400M in total from leading VC funds and corporations in the Asia region.
Founded in 2018, Flash Express entered the Thailand market as the first company that offers free door-to-door pickup and delivery service 365 days a year. Recognizing the pain points that customers face, Flash Express emphasizes to use fully in-house developed technology and big data to standardize and digitize the delivery process. This has led to transparent operation, increased efficiency, and improved customer experience, all coming with much competitive pricing. Flash Express co-founder and COO Di Weijie told Volanews that the electronic express bill system gives Flash Express a late-developing advantage.
E-commerce platforms such as Lazada and Shopee are key partners of Flash Express, while social e-commerce vendors in Thailand account for a larger proportion of the business.
In terms of business form, Flash Express have Directly-operated store and Franchised store, and more focuses on the side of directly-operated stores expansion. Within only two years, Flash Express is now the second largest private express delivery provider, with over 5,000 service branches covering all 77 provinces of Thailand and delivering more than 1 million parcels per day.
According to Di Weijie, the rapid growth of Flash Express is based on the core localization team’s understanding of the local market and the building of organizational mechanisms, said Di Weijie. Today, Flash Express has between 20,000 and 30,000 employees.
However, in a service-oriented market like Thailand, how Flash Express can better adapt its products and services to local needs and how it can better manage its local teams will remain a major challenge for the next few years.
From the newly investor side, Rajsuda Rangsiyakull, Senior Executive Vice President for Corporate Strategy, Innovation and Sustainability at OR, believes that this alliance with Flash Express will help strengthen OR’s business expansion and investments in new S-Curve businesses. Moreover, not only will it enhance the joint business potential in driving forward the shipping and energy industries, it will also enable the group to expand into other businesses that can meet future customer demands and suit future consumer behavior.
TCP Group Chief Executive Officer Saravoot Yoovidhya stated “This investment in Flash Express will allow Durbell to become stronger and boost its product distribution potential to cater to the future demands of the ever-growing logistics market.” The CEO further commented that “I am confident that our two businesses will mutually complete one another’s potential and thus render us a logistics powerhouse as well as help us achieve our collective goal of helping Thailand transform into a true digital economy.”
In the future, Flash Express will continue to focus on improving quality and efficiency of service and reducing costs. With the support of the three Thai giants in this round of financing, Flash Express aims to introduce other value-added services and further expand into other Southeast Asia countries.
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