AirAsia’s logistics arm Teleport buys food delivery app Delivereat for $9.8m

From Left: Tan Suan Sear and Leong Shir Mein, Co-Founders of Delivereat

Malaysia-based AirAsia’s logistics arm Teleport has acquired Penang-based food delivery app Delivereat for $9.8 million as the budget airline tries to expand its food delivery business.

The deal values Teleport at $300 million and is expected to close by end-September this year. Pending final approvals, Delivereat will become a unit of Teleport.

Delivereat founders Shir Mein Leong and Suan Sear Tan will join the management team of AirAsia Digital and Teleport, AirAsia said in a statement. Delivereat was founded in 2012 in Penang by the husband-and-wife team.

Teleport will also onboard several Delivereat investors including venture capital firm Gobi Partners to its management, AirAsia said in a statement.

The deal “strengthens Airasia Digital’s plan to cover the end-to-end logistics chain, from first- to last-mile deliveries,” said AirAsia’s founder and chief executive Tony Fernandes.

Delivereat claims to have delivered over 1 million orders to date and has 4,000 drivers and 4,000 merchants onboard. In August 2019, Aspen (Group) Holdings Limited (Aspen) made a cash investment of $1.19 million in Delivereat. It bagged $450,635 in a Pre-Series A funding round led by Shanghai-based Gobi Partners‘ Gobi MAVCAP ASEAN Superseed Fund in February 2017.

AirAsia launched its own food delivery services in April this year, in search of new revenue streams as the global COVID-19 pandemic continues to cripple the travel and tourism industries. It now has ambitions to become a regional super app,

Besides Malaysia, AirAsia also runs food delivery services in Singapore and Thailand. It told DealStreetAsia earlier this month that it aims to enter Indonesia and the Philippines next.

AirAsia had earlier announced that it will buy Indonesian ride-hailing and payments firm Gojek’s Thailand business in a stock swap, giving Gojek a 4.76% stake worth $50 million in the airline’s lifestyle platform.

In July, Fernandes had said AirAsia is considering a listing of its digital arm via a SPAC merger in the United States to raise at least $300 million.

AirAsia, which is listed on the Malaysian stock exchange, has a market capitalisation of $755 million. Its shares closed 2.94% lower on Wednesday at 0.825 ringgit ($0.19).

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.