Homegrown logistic tech startup Pickupp announced today (October 14) that it has secured additional investments from Reefknot, a joint venture backed by Temasek Holdings and Kuethne + Nagel.
This brings the total value of its series A and A+ funding to approximately US$20 million.
Pickupp’s series A+ round funding was concluded in July 2021, led by Taiwan e-commerce giant PChome and Cornerstone Ventures, with participation from existing investor Swire Properties, as well as new investors such as Cathay Venture Inc., DRIVE Catalyst (the corporate venture arm of Far Eastern Group) from Taiwan, the Jardine Matheson Group, and Zipx from Hong Kong.
With the additional injection of funds, Pickupp seeks to strengthen its operational efficiency to accommodate the growing use of online-to-offline (O2O) services in multiple markets that it’s present in.
Founded in 2016, Pickupp has operations in Hong Kong, Singapore, Malaysia and Taiwan, providing logistics support to over 20,000 businesses.
Pickupp will also use the funds to strengthen its dispatch network with the expansion of new satellite warehouses across different markets. It will go on to further support innovation and developments in Pickupp’s technology to better meet the evolving demand for last-mile deliveries.
“The e-commerce and last-mile delivery landscape is growing at a fast pace in Singapore, with sales from year-end promotions and delivery orders expected to reach record highs in the coming months,” said Lee Chee Meng, co-chief operating officer at Pickupp Singapore.
“We pride ourselves as an innovative logistics technology company, and with the support of our investors, we aim to further the momentum in improving our technology and offerings in the coming years. We also will continue to invest in the welfare of our delivery partners for them to grow in a productive and conducive environment at Pickupp.”
10 new satellite warehouses will be built in Singapore
Pickupp will welcome at least 10 new satellite warehouses across heartland areas in Singapore within the next six months.
The introduction of these new dispatch points aligns with Pickupp’s push to increase its walker delivery agent pool to improve the efficiency of deliveries during peak traffic hours and decarbonise its operations with sustainable deliveries.
Chee Meng cites heavy road traffic and carbon emissions as today’s major challenges in the logistics industry. The spike in e-commerce and delivery orders will only worsen the conditions if it’s not addressed.
“Sustainability is a long-term goal of ours, and we aim to achieve net-zero operations in the years to come. Therefore, we are taking on a unique approach to tackle these challenges by building and improving our walker network,” he added.
To fulfil the changing delivery needs, Pickupp will be launching its new self-drop off service, which features next-day deliveries with no minimum order at affordable rates. As such, small businesses, online marketplace users, and individuals can benefit from a wider range of options, as well as greater flexibility and convenience.
They can simply create an order, drop off their parcel at any of Pickupp’s dispatch points, and enjoy Pickupp’s next day delivery service with real-time GPS tracking.
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Featured Image Credit: Pickupp