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.