Ho Chi Minh City-based logistics startup EcoTruck has raised a $1.7 million pre-Series A funding from South Korean and Vietnamese investors, an executive with the company confirmed to DEALSTREETASIA.
Backers include Access Ventures, Nextrans and FuturePlay from Korea, and Viet Capital Ventures – a newly established Vietnamese firm associated with IDG Ventures Vietnam’s vice president Pham Hop Pho.
The news was first reported by e27.
EcoTruck will use the latest investment for platform enhancement and more hires, said Le Hoang Anh, founder and CEO of EcoTruck. Prior to this bridge round, the startup had raised $300,000.
With the current focus of development within Vietnam, EcoTruck plans ahead for Southeast Asia expansion after a series A round.
Established in 2017, EcoTruck provides B2B logistics services to connect merchants and logistics operators. To date, the company has worked with over 90 logistics vendors in Vietnam, who are managing 700 container trucks in Hai Phong and Ho Chi Minh City.
Hoang Anh said, the firm recorded a trucking GMV of $130,000 in August, while trucking revenue stood at $6,500. EcoTruck also earned $2,500 in revenue from other services including customs and freight booking.
The company’s services have helped reduce logistics costs for its partners by up to 20 per cent.
Vietnam’s logistics costs accounted for 21 per cent of the country’s GDP last year, according to data provided by the Vietnam Logistics Association.
Despite being the “backbone” of the economy, the local industry is challenged by poor infrastructure, large inventory as well as manual management, said Hoang Anh.
“With technologies and the right business model for a much bigger scale, EcoTruck can operate with a much lower cost, resulting in much lower prices (end prices of goods),” he said.