Loship Raises $12M: Vietnamese On-Demand E-commerce Growth

Loship Secures $12 Million in Pre-Series C Funding

Loship, a Vietnamese on-demand e-commerce platform originating as a review application, has recently announced the successful completion of a $12 million pre-Series C funding round. This investment elevates the company’s valuation to $100 million.

Round Details and Investors

The funding round was jointly spearheaded by BAce Capital, a venture firm backed by Ant Group, and the direct investment division of Sun Hung Kai & Co Limited. This injection of capital signifies strong investor confidence in Loship’s growth trajectory.

Founded in 2017, Loship initially focused on providing one-hour delivery services for a diverse array of products and services. These include food, ride-hailing, pharmaceuticals, and B2B supplies.

Company Growth and Reach

Currently, Loship boasts a network of over 70,000 drivers and collaborates with 200,000 merchants. The platform serves approximately 2 million customers across key Vietnamese cities such as Hanoi, Ho Chi Minh City, Da Nang, Can Tho, and Bien Hoa.

With this latest funding, Loship’s total capital raised now amounts to $20 million. Prior to this, the company secured a bridge round of funding from MetaPlanet Holdings in February 2021.

Strategic Round Splitting

Trung Hoang Nguyen, co-founder and CEO of Loship, explained to TechCrunch that the decision to divide the funding into pre-Series C and Series C rounds was due to the substantial investor interest in the Series C. The company anticipates closing the Series C round by the end of the current year and is actively engaged in discussions with potential investors.

Investor Participation

MetaPlanet Holdings also participated in the pre-Series C round. Additional investors included Wealth Well, Prism Ventures, and SQ Capital Group (SCCG Ventures Asia).

Notable individual investors contributing to the round were Mojtaba Ahkbari, former Vice President of Starbucks; Tim Neville, CEO of FNZ Group APAC; Ben Fitzpatrick, global macro sales director at BNP Paribas; Wayne Cowden, founder and CEO of DASS-Inc; Simon Eglise, managing partner at EC1; Quentin Flannery, director of Ilwella Pty Ltd; Jonathan Feil, director of Prenzler Group; and Milan Reinartz, CEO of iVS.

Future Expansion Plans

The newly acquired funds will be strategically allocated to expand Loship’s presence into new cities and further develop key verticals. A particular focus will be placed on growing B2B deliveries for small and medium-sized food and beverage businesses, as well as retail establishments.

As part of this investment, Benny Chen, founder of BAce Capital and former managing director of Ant Group India (with investments in Paytm and Zomato), will be joining Loship’s board of directors.

Path to Profitability

Trung Hoang Nguyen confidently stated that Loship is on a “very clear path to profitability.” The company’s evolution began as an online review platform, before organically transitioning into a marketplace for buying and selling goods.

“Initially, users leveraged our Lozi app similarly to eBay, listing products and engaging in direct transactions via chat. However, verifying the completion of these transactions, particularly those conducted solely online, proved challenging,” Nguyen explained to TechCrunch.

From Reviews to On-Demand Delivery

This realization led to the launch of Loship in late 2017, initially focusing on food delivery before expanding its services to encompass a wider range of verticals. Nguyen emphasized that the platform can accommodate “basically anything that can fit on or be transported legally by motorcycle.”

Competitive Differentiation

This broad scope, encompassing ride-hailing, groceries, medicine, laundry, packages, flowers, beauty products, and B2B supplies, allows Loship to distinguish itself from larger competitors like Grab and Gojek. Nguyen also highlighted the advantage of being a locally-rooted startup.

“As the sole domestic player, we possess a more profound understanding of our local customers compared to regional competitors. We are a local company with a proven strategy, strategically entering untapped markets like lower-tier cities, building a customer base, and then scaling from there.”

Expansion Strategy

Loship’s plan for the remainder of 2021 involves expanding operations into five additional major cities, bringing the total to ten. Subsequently, the company intends to target Tier 2 and 3 cities within Vietnam, followed by regional expansion into Southeast Asia, with Laos and Cambodia identified as key markets.

Investor Perspective

In a statement regarding the funding, Chen remarked, “Loship has created a robust ecosystem that delivers value to small businesses, customers, and delivery riders alike. Under Trung’s leadership, the company demonstrated resilience during the pandemic, consistently innovating its products and services for both merchants and users.”