Vietnam-based VinaCapital Ventures, which is said to be officially launched on August 30, also participated in the round.
Insignia Ventures Partners, founded by former Sequoia Capital venture partner Yinglan Tan, had earlier invested $600,000 in the truck platform.
The new fund will be used to expand services in Ho Chi Minh City, Hanoi, Hai Phong and Da Nang and upgrade products to serve big logistics corporates and enabling transparency in truck tracking & management, according to Linh Pham, Founder of LOGIVAN.
Founded in September 2017, LOGIVAN is a Vietnamese trucking platform aggregating trucking and shipping capacity over their platform.
After noticing that 70 per cent trucks in Vietnam returned empty due to a fragmented logistics market, Pham founded LOGIVAN as a connecting platform for trucks, becoming the first company in Vietnam working to ‘Uberize’ the trucking industry with technology.
It hopes to reduce inefficiencies in the Vietnamese trucking market valued at over $23 billion.
“LOGIVAN is in an exciting position and is poised to disrupt the trucking industry in Vietnam. We see very similar traits that made other platforms successful: fragmentation on both the supply and demand sides, a high rate of individual ownership of vehicles and excess capacity in the system,” said Kuok Meng Xiong, Managing Partner at Ethos Partners.
Linh Pham was former Goldman Sachs analyst and an alumna of the University of Cambridge. She helped LOGIVAN become the “Best Startup” in PITCH 2018 at RISE 2018.
Ethos Partners is a Singapore-based investment firm which focuses on the intersection of venture capital and private equity investing in South East Asia. Ethos is led by its Managing Partners Kuok Meng Xiong and Tan Peng Wei. It secures strategic partnerships for its portfolio companies and takes an active role in developing these businesses.
Insignia Ventures Partners is a venture capital firm specialising in startup investments. In February, it closed its maiden fund at $120 million. The milestone came less than a year after Tan left Sequoia’s office in Singapore and also marks the largest ever maiden vehicle by a venture capital firm in this region.