Scommerce, the parent company of the Companies GiaoHangNhanh (GHN) and AhaMove, has completed the largest funding round it has ever received, which was spearheaded by Temasek Holdings, a state-owned investment firm in Singapore. Despite the fact that the funding amount was not made public, it is estimated to be worth up to $100 million.
The CEO and creator of last-mile delivery startup GHN, Luong Duy Hoai, stated that the company’s mission is to support the rapid growth of Vietnam’s e-commerce and digital economy by connecting buyers and sellers of goods.
With the most recent investment from Temasek, GHN hopes to increase the capacity of its facilities, hire more technical personnel, and enhance its services while securing a larger national presence.
The increased money, according to Pham Huu Ngon, CEO of AhaMove, will be put to use to enhance four-hour and same-day delivery services, broaden coverage to outlying areas, and—most importantly—integrate more deeply with the GHN’s current infrastructure to reduce delivery costs for retailers.
Scommerce, one of the top e-logistics service providers in Vietnam, was established in 2012. It provides last-mile express and immediate delivery, business-to-business trucking, and fulfillment services.
Over 100,000 small- and medium-sized online retailers as well as the four biggest e-commerce sites in Vietnam, Shopee, Tiki, Sendo, and Lazada, have chosen GHN and AhaMove as their delivery partners.
The booming e-commerce industry in Vietnam has forced logistics companies like GHN and Ahamove to obtain additional funds, increase their investments in technology and operational systems, and enhance their services in order to keep up with client demand.
Temasek is one of the biggest investors in Vietnam’s e-commerce market, ranking alongside tech giants, venture capital funds, and investment firms like Alibaba, Tencent, Dragon Capital, CyberAgent Ventures, and IDG Ventures Vietnam, according to a report by Malaysian online shopping aggregator iPrice and Singaporean capital firm Cento Ventures. Dragon Capital and IDG Ventures have been seeding investments since the early days of e-commerce, while Alibaba, Tencent, and Temasek have only recently started investing in Vietnam’s e-commerce business.
Temasek and Chinese e-commerce behemoth Alibaba both support Lazada. Temasek contributed $249 million to Lazada in 2014; in the past, Temasek had also made investments in FPT Corporation, the owner of Sendo and FPT Shop.
Grab and Vietjet will be able to connect flights with ground transportation using Swift247’s technical solutions, delivering items between Hanoi and Ho Chi Minh City in five hours via Grab Express delivery services and Vietjet aircrafts.
Jerry Lim, country head of Grab Vietnam, said, “There is no other provider in the market who can offer a similar service. They only provide next day delivery while we can offer same day delivery. We believe our niche service will be successful in terms of volume as many online shoppers use e-commerce sites. If customers need their products urgently, they are willing to pay more for the service to get the delivery within five hours between Hanoi and Ho Chi Minh City.”
