IPO update

Ninja Van is a logistics group that uses motorcycles, boats and even buffaloes to transport 1.7 million packages in Southeast Asia every day. After a valuation of US$1 billion, it is considering an initial public offering as early as next year.

With the support of Facebook co-founder Eduardo Saverin’s B Capital, Ninja Van’s revenue and orders have increased significantly due to the e-commerce boom driven by 400 million Internet users in Southeast Asia.

This 7-year-old company has 34,000 employees and 1,800 sorting stations, and it specializes in providing delivery services to thousands of small cities and remote villages in Southeast Asia that cannot be served by international express delivery.Despite the coronavirus Pandemic mandatory lockdown, Daily shipments increased from 1 million in May 2020 to 1.7 million in July.

Chang Wenlai, one of the co-founders of Ninja Van, told the Financial Times that the company is “a year away” from its initial public offering.

Two people familiar with the Ninja Van plan said that the company has approached with consultants to discuss this process, and that the United States is the most likely place to go public.

Ninja Van has not disclosed its valuation, but one of them said that after completing a $279 million financing last year, the company has exceeded $1 billion. The company has almost reached break-even, and the goal is to achieve profitability in 2022.

Ninja Van driver delivers packages to customers in Mindanao, southern Philippines © Ninja Van

Ninja Van benefits from E-commerce boom In Southeast Asia. According to analysis by Google, Singapore government-backed investor Temasek, and consulting firm Bain, total sales of goods sold online in the region increased by 63% in 2020, reaching US$62 billion.

Companies in the region are increasingly entering the logistics sector, including ride-hailing companies Gojek and Grab, and Even Tony Fernandez’s AirAsia.

Ninja Van hopes to stand out through its extensive distribution network. Lai said that the company’s couriers can deliver to the most remote areas in Southeast Asia, where most competitors cannot reach them on a large scale.

Ninja Van also uses technology to allow sellers to view their performance and allows customers to track packages using platforms such as Facebook.

Karen Almenana, who manages the Ninja Van station in Cagayan de Oro, Mindanao, southern Philippines, said that deliveries have increased by 150% in the past 12 months.

Her driver transported packages in unpaved mountains, rice fields and the ocean, even during typhoons. She said that a driver once used a buffalo (a type of water buffalo used for plowing) across difficult terrain.

Almenana added that the drivers were tested for “hand-eye coordination” and the ability to balance packages in dangerous situations.

Anna Manatnant is a 29-year-old Bangkok internet celebrity who sells shoes and second-hand clothes online through Instagram and Instagram platforms. Dried shrimp, Said that low prices and customer service were one of the reasons she chose Ninja Van.

But Jeffrey Seah, a partner at Singapore venture capital firm Quest Ventures, pointed out that price competition is a major challenge facing emerging delivery groups.

“Generally speaking, logistics is a price war game. This is a costly battle for market share, and it may even be a winner-takes-all war,” Seah said.

“Some e-commerce companies have also started their own logistics services, partly to prevent existing participants from raising prices.”

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