Malaysia homegrown e-fulfillment service company iStore iSend has announced that it has received a seven-figure investment from Kuroneko Innovation Fund, a corporate venture capital firm owned by Japanese logistics giant Yamato Holdings.

The fund will be used for iStore iSend’s talent acquisition and improving its proprietary system to help the company in its plan for cross-border expansion, iStore iSend said in a statement on Monday.

The investment is an extension of iStore iSend’s Series B funding round in January 2021 for $5.5 million, which was already achieved by venture capital firm Gobi Partners and Malaysia logistics startup EasyParcel.

“We are hopeful that this strategic partnership will further strengthen our position in Southeast Asia. The investment from Kuroneko Innovation Fund will help us expand into the e-commerce market in neighboring countries such as Thailand and Vietnam,” iStore iSend Co-Founder and Chief Executive Officer Joe Khoo said.

“With the incorporation of iStore iSend into Kuroneko Innovation Fund’s portfolio, Yamato Holdings will proceed with the consideration to achieve provision of new value into the rapidly expanding e-commerce market in Asia,” Yamato Holdings Senior Managing Executive Officer Shinji Makiura said.

Incorporated in 2015, iStore iSend provides end-to-end services to its clients from storage and pick-and-pack to delivery arrangements when an e-commerce order is received.

The company also offers value-added services, such as real-time inventory management and shipment tracking. The integration of its system with e-commerce platforms enables it to receive and fulfill orders the moment they are placed, thus ensuring both speed and efficiency for the delivery process. In addition, iStore iSend has a warehouse house management system that is used to power brands’ Stock Keeping Unit hubs.

“The investment from Kuroneko Innovation Fund is further validation of the tremendous value that iStore iSend is creating for the industry. As an ecosystem builder, Gobi is excited to build more linkages between Malaysia and Japan, and we welcome more investment from Japanese funds into Malaysian startups,” Gobi Partners Co-founder and Chairman Thomas G. Tsao said.

Currently, iStore iSend deals with over 30 foreign fast-moving consumer goods (FMCG) brands and 300 local brands. In addition to its presence in countries like Malaysia, Singapore, and Indonesia, the company plans to expand its services to neighboring countries like Thailand and Vietnam.

The company also looks to promote omnichannel cooperation in managing offline inventory of foreign brands, provide its own integrated management product to its warehousing partners, enhance its warehouse network construction, enhance the growth of its customers and strengthen the operations of its systems according to the customers’ needs.

“Following the decision to expand our e-commerce market in Asia, we have evaluated iStore iSend’s ability to gain a deep understanding of this particular business area. We were impressed by its product development capabilities that are able to vertically integrate entire value chains, from ordering to delivering, ensuring high levels of customer satisfaction,” said Global Brain Corporation Founder and CEO Yasuhiko Yurimoto. “We will be supporting iStore iSend’s further growth of overseas expansion and its logistics operation strategy.”

Yamato set up the 5 billion yen ($45 million) Kuroneko Innovation Fund with Tokyo-based venture capital firm Global Brain Corp in April 2020, to invest in promising startups with an emphasis on digital transformation in the fields of logistics and supply chains, Japanese media Kyodo news reported.

Yamato is one of Japan’s largest door-to-door delivery service companies, with a market share of 42.3 percent market share, its website showed.