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Pickupp, the on-demand delivery and tech startup redefining logistics, has announced that it has successfully raised approximately US$15 million in Series A and Series A+ financing from regional strategic investors, after its first-round investment in November 2020.
The series A+ round funding was led by Taiwan e-commerce giant PChome and Cornerstone Ventures, with participation from an existing investor, Swire Properties, and new investors including Cathay Venture Inc. and DRIVE Catalyst (the corporate venture arm of Far Eastern Group) from Taiwan and the Jardine Matheson Group and Zipx from Hong Kong. The company will accelerate new expansion in Taiwan and deepen its presences in key markets including Hong Kong, Singapore and Malaysia.
Founded in 2016, Pickupp is redefining logistics with a tech and data-driven approach. Its customized last-mile delivery services and trademark technology have earned a loyal customer base from notable MNCs and logistics giants to retail and e-commerce businesses. In Malaysia, the funds will enable Pickupp to strengthen its local market position as the preferred collaborative logistics partner for Malaysia’s largest logistics players as well as local businesses. Pickupp will expand coverage and optimise operational efficiencies to meet the market’s evolving needs.
Planning for market expansion
The funding allows Pickupp to seize and capitalise on the opportunities amid the soaring growth in e-commerce. In a new forecast by Forrester, online retail sales in Asia Pacific will grow from $1.5 trillion in 2019 to $2.5 trillion in 2024, with a compound annual growth rate (CAGR) of 11.3%. Working with strategic partners, Pickupp will explore innovative e-commerce models, particularly in Taiwan, where there is growing demand for cross-border e-commerce.
“The pandemic has triggered a seismic shift in consumer behaviour, it has led to droves of retailers moving their business online and scaling up their digital presence to meet the surging demand. Over the past year, we’ve seen more retailers looking for reliable, flexible and faster delivery solutions,” said Crystal Pang, Co-founder and CEO of Pickupp. “We are pleased to have such strong support from new and existing investors. This round of funding will help us to fuel our expansion in Taiwan and other markets, as well as diversify our product portfolio and offerings based on the needs of each market.
“We see tremendous growth opportunities in the region, and through our tech-driven solutions and services, we will be able to significantly enhance the support we provide to SMEs and help them to meet the growing demands of the digital economy. We are delighted to partner with PChome as they share our deep commitment to innovation and delivery of world class O2O services,” Crystal continued.
“As a major e-commerce player in Taiwan, PChome strives to provide reliable services to our customers every day, and we truly believe a reliable fulfilment is a cornerstone. In our 20+ years of operating history, we have worked closely with a wide range of logistic partners to advance and innovate our services. Pickupp’s technology and solutions, in our belief, will play a significant role to reshape how last-mile delivery is achieved regionally and in Taiwan. It’s our honor to be Pickupp’s strategic partner and a lead investor in this round of funding. We look forward to the cooperation ahead,.” said Kevin Tsai, CEO of PChome.
To date, Pickupp’s user base has grown by 250% since the outbreak of the pandemic in March 2020, with over 100,000 delivery agents onboard across all regions. In Malaysia, the business has seen a user base growth of 198%, with earning opportunities created for 25,000 independent delivery agents. As a result, Pickupp has become the last mile for MNCs and the first step for startups and SMEs. In Malaysia, the startup also partners with logistics giants to support their delivery processes, especially during periods of peak demand.
Partnering with regional strategic investors to seize growing E-commerce opportunities
Based in Hong Kong and operating in Singapore, Malaysia, and Taiwan, Pickupp has established strategic partnerships with global brands and merchants which have been transitioning their businesses to O2O retail. In Taiwan, local e-commerce giant PChome has selected Pickupp as the logistics and e-commerce partner to strengthen its last mile delivery solutions and further enhance their e-commerce capability.
In Malaysia, Pickupp partners with leading logistics giants, e-commerce players, and SMEs to develop and optimise the local logistics ecosystem. Navin Kandapper, country manager of Pickupp Malaysia, said, “In Malaysia, there has been a surge in demand for delivery services, especially through various stages of lockdowns and movement control orders. Malaysians are relying on e-commerce for daily necessities as well as retail shopping needs, as we saw during the recent Hari Raya period through our partners such as FashionValet, and we anticipate this will continue as part of the new normal.
Through this funding, Pickupp Malaysia plans to expand coverage of more territories in Malaysia, grow its workforce of delivery agents, and continue investing in technology to further improve its offerings in the market, creating earning opportunities and supporting the recovery of businesses affected by the pandemic.
