Indonesia’s J&T Express bags over $2b funding from Chinese investors: Report

Jakarta, Indonesia. Photo: Sopan Sopian/Pixabay

J&T Express, an express delivery company headquartered in Indonesia, has raised over $2 billion in a new funding round backed by Chinese PE giants Hillhouse Capital and Boyu Capital, as well as Sequoia Capital China, according to a report by The Information.

Citing sources, the report said that J&T’s pre-money valuation in the round stood at $6 billion.

Earlier, Bloomberg had reported that J&T was also weighing a listing proposition through the US IPO route.

The company is understood to have garnered an investment of over $100 million last year, as reported by DealStreetAsia. The round saw funding by several Chinese VC firms after it was hotly contested by multiple bidders.

J&T is understood to have evinced significant investor interest due to its strong market position, leadership and business growth. In Indonesia, it is the preferred delivery partner of the market’s number one e-commerce player Shopee. Besides, the company is also serving other marketplaces in the archipelago such as Tokopedia and Bukalapak.

J&T Express was founded by former OPPO executives, Jet Lee and Tony Chen.

The company carries out intra-city, inter-city and inter-provincial deliveries, while also providing warehouse and supply chain solutions for e-commerce merchants in Indonesia.

J&T has also expanded significantly in the other Southeast Asian markets in the recent years to cover Vietnam, Malaysia, Thailand, Cambodia, Singapore and the Philippines. It has also forayed in China, where it is understood to be aggressively taking on Alibaba’s ecosystem of express couriers, its own logistic firm Cainiao, as well as a number of investee companies ZTO Express, YTO Express, STO Express.

A $2 billion investment would dwarf the recent $170 million funding raised by SiCepat, one of J&T’s closest competitors in the last-mile delivery space. Announced last month, SiCepat said that its new round counts as the largest Series B to be raised in Southeast Asia, and brings it closer to the $1 billion valuation mark.

The rise of last-mile delivery players in Indonesia owes much to the boom around the e-commerce sector in the country, driven by the success of marketplaces like Shopee, Tokopedia, Bukalapak, JD.ID, Blibli – they all have seen rapid growth and are valued over the $1 billion mark.

According to the e-Conomy SEA 2019 report by Google and Temasek, the Indonesian e-commerce sector will be worth a total of $82 billion by 2025, making up almost two-thirds of the country’s digital economy.

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.

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.