Thai delivery startup Flash says raises $150 mln, becomes 'unicorn'

GigaMedia

01/06/2021 10:44

By Chayut Setboonsarng
    BANGKOK, June 1 (Reuters) - Thai logistics startup Flash
Group on Tuesday reported its latest round of fundraising had
generated $150 million, which it said pushed its overall value
beyond the $1 billion mark, reflecting a surge in e-commerce
demand. 
    The new investment comes amid strong growth of online retail
in Thailand at a time of prolonged coronavirus outbreaks and
social restrictions. 
    Flash Group chief executive, Komsan Lee, said among the
company's next moves would be to expand elsewhere in Southeast
Asia.
    Flash, founded in 2017, has not publicly disclosed a
breakdown of investments in the company. Asked by Reuters about
the valuation, Komsan said: "Exceeded $1 billion, that's a
unicorn".
    Bank of Ayudhya  BAY.BK , which is among its investors,
confirmed the $1 billion valuation, which would make Flash
Thailand's first unicorn.
    Flash has about 7,000 delivery points and 27,000 employees
and plans to add another 10,000 workers within two years. 
    "The market is growing faster than the existing services,"
Komsan said.
     In a statement, Flash said the latest rounds, which closed
on Tuesday, included Siam Commercial Bank's  SCB.BK  venture
arm, SCB 10X, Chanvanich Security Printing and Buer Capital.
    Those included returning investors from a previous round
last year, which it said featured Alibaba-backed eWTP Capital
 9988.HK , TCP Group, which owns the Red Bull energy drink, PTT
Oil and Retail Business Pcl  OR.BK  and Bank of Ayudhya unit
Krungsri Finnovate, which had raised $200 million.
    It did not provide details of earlier rounds. 
    The capital would help expansion into more communities and
the introduction of payments services this year with its
investors, Komsan said, adding there were plans to support
online merchants with loans.
    Flash competes with Kerry Express Thailand  KEX.BK , which
raised $270 million in an initial public offer last year.
    "Expanding into payments might be more difficult for a
facilitator, and here partnering might be better," said Axel
Winter, Venture Partner at Bangkok-based Alpha Founders Capital.
    "They can improve upon cash-on-delivery, which is still very
big in Thailand." 

 (Reporting by Chayut Setboonsarng; Editing by Martin Petty)
 ((chayut.setboonsarng@tr.com, Twitter: @ChayutSet;
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