Vietnam-based logistics startup LOGIVAN announced that it has raised a US$5.5 million funding round from angel investors and venture capital firms across Asia, including Matrix Partners China founding Managing Partner David Su through his family office, and Jakarta-based Alpha JWC Ventures.
In a press statement, the company said that the funding round is the largest LOGIVAN has raised to date.
Last year, LOGIVAN closed two separate rounds of funding: A US$600,000 round in April from Insignia Ventures Partners and a US$1.75 million round from Ethos Partners, Vinacapital Ventures, and Insignia.
With the latest funding round, the company has raised a total of US$7.9 million in funding at an undisclosed valuation.
“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, we believe that Logivan has the potential to emulate its success,” David Su explained his reason for investing in LOGIVAN.
With the new funding round, LOGIVAN plans to invest in data analysis and cross-platform integration to increase supply chain efficiency and optimise user experience.
It will also invest in artificial intelligence (AI) application, truck-matching and pricing algorithms (to optimise the utilisation of empty returning trucks) as well as in human resource.
LOGIVAn was founded in November 2017 by Cambridge University graduate Linh Pham to provide cargo transportation services between Vietnamese Northern and Southern provinces.
In 2018, LOGIVAN said it has connected more than 22,000 transportation partners with “every major commercial truck type” with 10,000 shippers registered on its system.
Image Credit: LOGIVAN