LOGIVAN Announces its Latest US$5.5 Million Round From Prominent Angel Investors
Published by: LOGIVANPublished on: 22/06/2019
LOGIVAN Technologies has just secured a total of US$5.5 million from prominent angel investors and VCs from across Asia. This is the largest round of funding that LOGIVAN has raised to date, coming after only 15 months of trading.
The Investor of the Global Unicorns
A prominent participant in this funding round is angel investor David Su through his family office. David is a founding Managing partner of Matrix Partners China – a multi billion-dollar investment funds with a commitment to building long-term relationships in digital economy companies. David is experienced at investing in mobile internet companies, software services and hi-tech firms; with Matrix, he has led early stage investments in more than 30 unicorns, including international ride-sharing company Didi Chuxing, ele.me and numerous other successful ventures.
In sharing his reasons for investing in LOGIVAN, David Su 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% of Vietnam’s GDP, with 90% of trucks in Vietnam being owned by individuals. Given the success of Manbang, we believe that Logivan has the potential to emulate its success.”
A notable co-investor is Alpha JWC, an Indonesian venture capital firm with a sharp focus on high-tech companies and a proven track record.
This is the third round of funding raised by LOGIVAN. Last year, LOGIVAN successfully closed two separate rounds of funding. Firstly, LOGIVAN raised US$600,000 in April from Insignia Ventures Partners. Then in August, LOGIVAN raised a combined US$1.75 million from three funds: Ethos Partners, Vinacapital Ventures and Insignia. Now after this latest round, LOGIVAN has raised a total of US$7.9 million in funding at an undisclosed valuation.
LOGIVAN – The Logistics Industry Pioneer
LOGIVAN’s core value is providing route management and optimisation in a fragmented logistics network, resulting in cost and efficiency savings for businesses. The technology also provides convenience for users, price transparency, and additional features such as track and trace.
With the latest US$5.5 million raised, LOGIVAN will invest in data analysis and cross-platform integration to increase supply chain efficiency and provide an optimal experience for partners and customers. The company will also apply artificial intelligence (AI) to verify information, safeguard information, understand user needs, and increase prediction accuracy.
With the funding, LOGIVAN will continue developing pioneering truck-matching and pricing algorithms to optimize the utilisation of empty returning trucks (which are estimated at 70% in Vietnam). The business is also investing heavily in its people, both creating jobs in rural locations and recruiting the best regional technology talent.
Founded in November 2017 by Cambridge University graduate Linh Pham, LOGIVAN provides cargo transportation services between Vietnamese Northern and Southern provinces. LOGIVAN uses a network of truckers with small and medium-sized shippers, providing its platform free of charge on the LOGIVAN mobile applications.
Vietnam’s logistics costs currently are amongst the highest in the region and the world, accounting for 21% of GDP (US$47 billion) and with 70% of trucks returning empty. This presents a resource drain for Vietnamese businesses, forming a barrier to both local and international investment. LOGIVAN promises to reduce logistics costs to businesses by 30%.
In 2018, LOGIVAN connected more than 22,000 transportation partners with every major commercial truck type. The network also has 10,000 shippers registered on its system.
LOGIVAN is one of a number of dynamic Southeast Asian startups with a rapid growth trajectory. The company won First Prize at the Uber Exchange programme in 2017, won Best Startup at RISE Pitch Battle 2018 and also won First Prize at [email protected] Global 2018 organized by HRH Prince Andrew, Duke of York.