Hong Kong logistics startup Pickupp announced that it has raised approximately $15 million in Series A and Series A+ financing from regional strategic investors, after its first-round investment in November 2020.

The Series A+ round funding was led by Taiwan e-commerce giant PChome and Cornerstone Ventures, with participation from an existing investor, Swire Properties, and new investors including Cathay Venture Inc., DRIVE Catalyst, the corporate venture arm of Far Eastern Group from Taiwan, and the Jardine Matheson Group and Zipx from Hong Kong.

The company will accelerate new expansion in Taiwan and deepen its presence in key markets including Hong Kong, Singapore and Malaysia.

“The pandemic has triggered a seismic shift in consumer behavior, it has led to droves of retailers moving their business online and scaling up their digital presence to meet the surging demand. Over the past year, we’ve seen more retailers looking for reliable, flexible and faster delivery solutions,” Pickupp Co-founder and Chief Executive Officer Crystal Pang said.

“This round of funding will help us to fuel our expansion in Taiwan and other markets, as well as diversify our product portfolio and offerings based on the needs of each market,” she added.

In Malaysia, the funds will enable Pickupp to strengthen its local market position as the preferred collaborative logistics partner for Malaysia’s largest logistics players as well as local businesses. Pickupp will expand coverage and optimize operational efficiencies to meet the market’s evolving needs.

“In Malaysia, there has been a surge in demand for delivery services, especially through various stages of lockdowns and movement control orders. Malaysians are relying on e-commerce for daily necessities as well as retail shopping needs, as we saw during the recent ‘Hari Raya’ (festive) period through our partners such as FashionValet, and we anticipate this will continue as part of the new normal,” Pickupp Malaysia country manager Navin Kandapper said.

Through this funding, Pickupp Malaysia plans to expand coverage of more territories in Malaysia, grow its workforce of delivery agents, and continue investing in technology to further improve its offerings in the market, creating earning opportunities and supporting the recovery of businesses affected by the pandemic.

Founded in 2016, Pickupp said its customized last-mile delivery services and trademark technology have earned a loyal customer base from notable multinational corporations (MNCs) and logistics giants to retail and e-commerce businesses.

The funding also allows Pickupp to seize and capitalize on the opportunities amid the soaring growth in e-commerce.

In a new forecast by Forrester, online retail sales in Asia Pacific will grow from $1.5 trillion in 2019 to $2.5 trillion in 2024, with a compound annual growth rate of 11.3 percent.

Working with strategic partners, Pickupp will explore innovative e-commerce models, particularly in Taiwan, where there is a growing demand for cross-border e-commerce.

To date, Pickupp’s user base has grown by 250 percent since the outbreak of the pandemic in March 2020, with over 100,000 delivery agents onboard across all regions.

In Malaysia, the business has seen a user base growth of 198 percent, with earning opportunities created for 25,000 independent delivery agents. The startup also partners with logistics giants to support its delivery processes, especially during periods of peak demand.

Based in Hong Kong and operating in Singapore, Malaysia, and Taiwan, Pickupp has established strategic partnerships with global brands and merchants which have been transitioning their businesses to online-to-offline retail.