Delivery startup Pickupp secures US$37m funding led by Jardine Matheson

HONG KONG on-demand delivery startup Pickupp has raised US$37 million in Series B funding, led by mainboard-listed Jardine Matheson. This is the startup's third round of fundraising in 13 months.

Existing investors also contributed to the funding, including Temasek-backed Reefknot Investments, Cathay Venture, PChome Online, Swire Properties and Drive Catalyst, the corporate venture arm of Far Eastern Group.

In a press statement on Wednesday (Dec 8), Pickupp said the funds will be used to strengthen regional logistics network infrastructure, especially when e-commerce and quick commerce are experiencing continued growth.

"Quick commerce is becoming more prevalent in Singapore, with more consumers venturing online to purchase groceries and daily necessities. This trend has increased the demand for flexible and faster deliveries, raising the bar for service standards in the last-mile delivery space," said Lee Chee Meng, co-chief operating officer of Pickupp.

Pickupp is a data-driven supply chain platform with operations in Hong Kong, Singapore, Malaysia and Taiwan. It was founded in Hong Kong in 2016, and expanded to Singapore and Malaysia in the following year.

In December 2018, the startup secured pre-Series A funding, followed by Series A and A+ funding in 2020 and 2021 respectively. Funds in both rounds were used to expand further into existing Asian markets and for strategic partnerships to enhance digital offerings.

Pickupp currently provides logistics support and on-demand delivery to over 24,000 companies, including multinational corporations, logistics giants and those in the retail and e-commerce sectors.

In 2020, the startup launched Shop on Pickupp, a 1-stop e-commerce platform with payment and tech-enabled delivery solutions for businesses, according to Pickupp. Funds raised from the second round of funding were used to develop this platform.

By mid-2022, Pickupp will introduce 10 new satellite warehouses across Singapore in order to provide pick up and drop services, micro-fulfilment, warehousing and cross-border services.

This is aligned with its goal to improve efficiency of deliveries, especially during peak traffic hours, and to increase the walker and rider delivery agent pool.

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