Summary:
Ninja Van is in talks to raise $80 million, which would halve its valuation to $1 billion
Existing investors B Capital Group and Monk’s Hill Ventures are leading the round
The funding reflects broader struggles in the Southeast Asian tech sector, including falling valuations and funding difficulties
Despite e-commerce growth, logistics startups face stiff competition and thin margins
Ninja Van, delivering 2 million parcels daily, had a valuation well over $1 billion after its 2021 Series E round
Logistics startup Ninja Van is currently negotiating an internal funding round that could see its valuation cut by approximately half, a stark indicator of the challenges tech companies face in Southeast Asia's current funding climate.
The Funding Round Details
- Singapore-based Ninja Van, with backing from Alibaba Group Holding Ltd., is aiming to raise $80 million.
- This round is expected to adjust the company's valuation down to around $1 billion.
- Leading the investment are existing backers B Capital Group and Monk’s Hill Ventures, with investors securing favorable terms for future exits.
The Broader Context
This development comes at a time when the Southeast Asian tech sector is experiencing significant turbulence, including:
- Job cuts and CEO resignations.
- Declining startup valuations.
- Challenges in securing funding or going public due to global macroeconomic uncertainties.
Competitive Pressures
Despite the growing popularity of e-commerce in Southeast Asia, companies like Ninja Van face:
- Intense competition from players such as J&T Global Express Ltd. and Sea’s SPX Express.
- Slim profit margins in the logistics industry.
Ninja Van's Background
- Founded in 2014, Ninja Van operates across six Southeast Asian markets.
- The company delivers 2 million parcels daily.
- In 2021, it raised $578 million in a Series E round, boosting its valuation significantly beyond $1 billion.
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