GIZTIX, a logistics marketplace startup, has closed a $1.65-million Series A funding round from AddVentures, a venture capital arm of Thai industrial conglomerate SCG, Wavemaker and 500 Tuktuks to accelerate its growth in terms of both revenue and operations.
The startup had earlier received seed funding from KK Fund and 500 TukTuks in February 2015.
“We look for strategic VCs in Series A round who share the same value and believe in our mission to become Southeast Asia’s leading delivery service provider,” Sittisak Wongsomnuk, CEO and co-founder of GIZTIX, said. “AddVentures and Wavemaker do not only provide us money, but they can also help us achieve rapid and robust growth.”
DEALSTREETASIA first reported on the funding round earlier this month.
GIZTIX plans to use the latest funding to expand its operations in Southeast Asia and ten times revenue over the next two years with over 4,000 logistics service providers on the platform. Of that, 80 per cent will be Thai operators and the rest are expected to be from neighbouring countries.
So far, it has more than 300 third-party logistics companies and 1,500 transport vehicles on its platform.
Dr Joshua Pas, managing director of AddVentures by SCG, said that GIZTIX was its first direct investment into a startup since it launched the fund this year.
“After this investment, we will focus on commercial deals with GIZTIX and, at the same time, continue to support the ecosystem by acting as the growth platform for startups in B2B, enterprise and industrial verticals to scale in Southeast Asia, aligning with our philosophy ‘You Innovate, We scale’,” he added.
SCG Logistics, a subsidiary of SCG Cement-Building Materials, is considered the largest transportation provider in Thailand with 7,000 trucks under management, which could register as service providers on the GIZTIX platform to minimize their idle time.
On the demand side, its partners could participate in the marketplace as another means to secure transportation for their goods, he added.
After seeing the growth in regional trade and e-commerce transactions, SCG has become more focused on tapping into the logistics and delivery business; it had in the past provided its services mostly to the industrial sector.
Prior to the investment in GIZTIX, it announced a 65:35 joint venture with Japan’s Yamato Asia Pte to provide logistics services in Thailand, focusing on the B2C and C2C segments for small parcel delivery, in August last year.
In addition, GIZTIX has officially announced its partnership with other logistics startups to launch the E-Logistics Association, chaired by Wongsomnuk, to develop e-logistics systems and train logistics operators to use them. The association counts industry players such as Siam Outlet, Shippop and MyCloudFulfillment among its members.