11:07 | 27/12/2019 Companies
(VEN) - Logivan, a Vietnamese platform that connects truckers with shippers, has successfully secured US$5.5 million from prominent angel investors and venture capital firms across Asia. This is the largest round of funding that Logivan has raised to date.
|Logivan will continue developing pioneering truck-matching and pricing algorithms to optimize the utilization of trucks returning empty after offloading deliveries|
Pioneer in logistics industry
Logivan provides cargo transportation services between Vietnam’s northern and southern provinces, using a network of truckers and small- and medium-sized shippers, providing its platform free of charge on a mobile app. The platform promises to reduce logistics costs by 30 percent.
Logivan Founder and CEO Pham Khanh Linh said her choice of the logistics industry was accidental. Returning to Vietnam after seven years of studying and working in the UK, she joined her family business - a company specializing in pesticides. After a year, she observed that all the trucks returned empty after dropping off their loads. She came up with the idea to found Logivan.
Vietnam’s logistics industry is highly fragmented and 90 percent of trucking companies in Vietnam own less than five trucks. This presents a resource drain for Vietnamese businesses, Linh said.
After more than two years of development, Logivan has about 200 employees, three offices in Hai Phong, Hanoi and Ho Chi Minh City and a 44,000-truck fleet. In 2018, Logivan connected more than 22,000 transportation partners with every major commercial truck type. The network has nearly 11,000 shipping companies registered on its system.
Logivan’s research team consists of MA and PhD degree holders from foreign countries such as Japan and Europe. They have worked to digitize the trucking industry by providing a high-quality automatic truck matching system.
Investors believe in Logivan
With the latest US$5.5 million it raised, Logivan will invest in data analysis and cross-platform integration to increase supply chain efficiency and provide an optimal experience for partners and customers. The company will also apply artificial intelligence (AI) to verify information, understand user needs, and increase prediction accuracy.
Logivan will continue developing pioneering truck-matching and pricing algorithms to optimize the utilization of trucks returning empty after unloading deliveries. The company is also investing heavily in its people, both creating jobs in rural locations and recruiting regional technology talent.
Sharing his reasons for investing in Logivan, David Su, Founding Managing Partner at Matrix Partners China, said: “Vietnam is the next rising star in the growing Southeast Asia region and it is well poised to experience a similar growth trajectory to the one we witnessed in China. Vietnam’s logistics industry is highly fragmented, and logistics costs make up 23 percent of Vietnam’s GDP, with 90 percent of trucks in Vietnam being owned by individuals. Given the success of Manbang, we believe that Logivan has the potential to emulate its success.”
A notable co-investor is Alpha JWC, an Indonesian venture capital firm with a sharp focus on high-tech companies and a proven track record.
|Last year, Logivan successfully held two funding rounds, with total capital of US$2.4 million from Ethos Partners, Vinacapital Ventures and Insignia Ventures Partners. The company won first prize at Pitch@Palace Global 2018 organized by HRH Prince Andrew, Duke of York.|