Logistics company Teleport, the venture under Capital A Berhad (formerly known as AirAsia Group Berhad) has raised US$50 million (approximately RM220 million), according to a press release from today.
The growth capital was raised from large institutional credit investors, though the specific parties involved are undisclosed.
Teleport will use the funds to strengthen its freighter network and expand on-ground operations. To do so, they plan to invest in technology, induct additional freighters, and build critical hubs in Indonesia, the Philippines, and Malaysia.
These efforts will allow both B2B and B2C customers of Capital A venture to “teleport” their packages within 24 hours across Southeast Asia.
“We believe if we guarantee next-day speed at a cost anyone can afford, everyone will choose to ‘Teleport It’,” said Pete Chareonwongsak, the CEO of Teleport.
The sky’s the limit
According to the press release, the cross-border logistics company is aiming for market leadership, leveraging AirAsia Aviation’s network of passenger flights.
The CEO believes that the key to leadership is by extending Teleport’s network coverage by air through the induction of A321F freighters starting in Q1 of 2023.
Over the past year, Teleport has quadrupled its intra-SEA market share in terms of cargo volume, going from 2% in 2021 to 9% as of Q3 2022. Its ecommerce business’s year-on-year growth has also sextupled.
According to the release, this was achieved by focusing to serve three key business segments across the Southeast Asian region.
First, the global freight forwarders looking for the widest regional network; second, ecommerce marketplaces seeking affordable middle mile solutions by air; and most recently, consumers looking for affordable international next-day parcel delivery.
While Teleport has been a B2B-first logistics company, the newly launched Teleport Pink is a B2C product that gives customers access to affordable next-day deliveries. The fresh funds will likely help bolster this particular product.
“Today we are profitable, larger, and growing faster than pre-COVID. We are battle-tested and believe a challenging environment is the perfect opportunity to build the leading cross-border logistics company in Southeast Asia,” Chareonwongsak said.
Featured Image Credit: Teleport