Flash Express, a logistics company serving e-commerce businesses in Thailand, announced on Monday that it has secured $200 million in a recent funding round. This investment will be used to capitalize on the expanding market, which has experienced significant growth as a result of increased demand linked to the coronavirus pandemic.

This Series D funding round was spearheaded by PTT Oil and Retail Business Public Company Limited, the prominent oil and retail division of the Thai conglomerate PTT. Additional participation came from Durbell and Krungsri Finnovate, both leading conglomerates within Southeast Asia, bringing the total funding raised by Flash Express to approximately $400 million.

Flash Express provides a door-to-door parcel pickup and delivery service and positions itself as the second-largest private company in this sector. The company, which also has Alibaba as an investor, initially gained traction by offering delivery rates as low as 60 cents per package, enabling it to rapidly capture a substantial portion of the market.

Over the past year, Flash Express has undergone considerable expansion. The company’s network has grown from around 1,100 delivery locations to over 5,000, now surpassing the number operated by Thailand Post, a service with a 138-year history.

Currently, Flash Express handles more than 1 million parcels daily, a significant increase from approximately 50,000 parcels during the same period last year. The company has also made substantial investments in technology, including fully automated sorting systems capable of processing over 100,000 parcels per minute.

According to Komsan Lee, CEO of Flash Express, the newly acquired funds will be allocated to the introduction of new services and expansion into additional Southeast Asian countries (specific locations were not disclosed). “We are also focused on developing and implementing new technologies to further enhance delivery and logistics effectiveness. Crucially, we aim to support small and medium-sized enterprises by reducing their investment expenses, which we believe will contribute to the long-term prosperity of the Thai economy in the digital age,” he stated.

Retail Business Public Company Limited intends to utilize Flash Express’ logistics infrastructure to address the increasing consumer demand, as explained by Rajsuda Rangsiyakull, senior executive vice president for Corporate Strategy, Innovation and Sustainability at Retail Business Public Company Limited.

Flash Express’ competitors include Best Express – also supported by Alibaba – and Kerry Express, which filed for an initial public offering in late August.

Despite the recent surge in online shopping and delivery services, some projections indicate that Thailand’s overall logistics market may experience its first decline this year. Chumpol Saichuer, president of the Thai Transportation and Logistics Association, noted last month that Thailand’s logistics sector has already been negatively impacted by the slowing global economy.