Teleport, the cargo and logistics arm of budget carrier AirAsia Group, and venture capital firm Gobi Partners have invested $10.6 million in a Series B funding round for local e-commerce and parcel delivery startup EasyParcel.
The fresh capital will be used to scale EasyParcel’s services across ASEAN, said AirAsia in a statement on Tuesday. Both Teleport and Gobi Partners will become major shareholders and board members of the startup after the financing.
The startup will also be able to leverage the logistics and infrastructure capabilities of Teleport, formerly known as RedCargo Logistics, which include more than 100 cities, 10,000 AirAsia flights weekly and some 1 million tonnes of cargo capacity.
“Teleport will transform the logistics and e-commerce ecosystem as we know it, making it easier for people, especially SMEs, to move items from A to B. With our deep operational expertise, this investment will allow us to accelerate the accessibility of logistics for SMEs, while at the same time encourage more collaboration with the regions logistics startup community,” said Teleport CEO Pete Chareonwongsak.
Founded in 2014, EasyParcel aims to address last-mile delivery challenges as a web-based parcel consolidator and an e-commerce shipping solutions provider. It claims to have delivered more than 19 million parcels since its inception.
Headquartered in Penang, the northern state of Malaysia, EasyParcel also has operations in Indonesia, Singapore and Thailand. Its founder and CEO Clarence Leong said the latest financing will be key to strengthening the startup’s footprint in its existing markets.
“As a platform, EasyParcel is uniquely positioned to streamline the customer’s full journey by integrating end-to-end logistics services with its partners. This generates operating efficiencies overall and creates synergies for the entire ecosystem, including our existing logistics investments, Deliveree and Zoom,” said Gobi Partners chairman and founding partner Thomas Tsao.
EasyParcel last raised an undisclosed Series A round in 2016 from Axiata Digital Innovation Fund (ADIF) and angel investors. Teleport made the investment in the startup from its retained earnings, while Gobi Partners invested through its Meranti Asean Growth Fund.
Gobi Partners is targeting to raise $200 million for the Southeast Asia-focused vehicle that will write cheques between $5 million and $20 million. The VC firm recently launched a $10-million microfund to support early-stage startups in Malaysia.
In March, through its digital arm RedBeat Ventures, AirAsia launched a VC fund called RedBeat Capital in partnership with Silicon Valley-based VC firm 500 Startups to invest in post-seed stage startups, with a particular focus on travel and lifestyle, logistics as well as fintech.