Indonesian startup J&T Express said to seek over $2b in pre-IPO round

Indonesian courier startup J&T Express is in talks with investors to raise more than $2 billion ahead of a Hong Kong initial public offering (IPO), and is looking to expand in Latin America, three people with knowledge of the matter told Reuters.

The logistics firm is seeking to hit a $20 billion valuation with the $2-2.5 billion fundraising round that is expected to be finalised in the coming weeks, and attract Tencent Holdings among other investors, the sources said.

Existing J&T investors Boyu Capital, Hillhouse and Sequoia Capital China are also looking to join the round, which will more than double the company’s valuation from a previous round that closed in April.

J&T at the time raised $1.8 billion, led by Boyu and joined by Sequoia and Hillhouse at a post-money valuation of $7.8 billion, said one of the three and a separate source.

J&T and Hillhouse did not answer requests for comment. Tencent, Sequoia and Boyu declined to comment.

The courier company plans to list in Hong Kong next year, said the sources, who declined to be named as the information is confidential.

J&T was launched in 2015 in Indonesia by two senior executives of Chinese smartphone manufacturer Oppo, who used their experience in distribution to build up a massive logistics network across Southeast Asia targeting the region’s booming e-commerce players.

The company entered China in 2020, and competes with local rivals such as S.F. Holding, ZTO Express and the in-house logistics networks of e-commerce giants Alibaba Group and JD.com.

Two of the sources said that J&T, whose business was buoyed by a pandemic-induced home delivery boom, is now preparing to launch in Latin America, where Southeast Asian e-commerce firm Shopee, a top client, has quickly expanded since its foray two years ago.

Analysts say J&T’s experience in serving smaller cities in Southeast Asia and China should help it grow in Latin America and serve both existing clients like Shopee and Chinese companies seeking broader global exposure.

“J&T is building a UPS/DHL-like global infrastructure which is catered towards booming e-commerce,” advisory firm Momentum Works’ Chief Executive Officer Jianggan Li said.

“The fact that they first proved their business in Southeast Asia gives them a key advantage over Chinese companies in managing cross cultural organisation and operations effectively.”

Reuters

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.

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

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  • 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. 
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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.