Pickupp Malaysia, the Malaysia unit of Hong Kong-based logistics startup Pickupp, announced on Monday its expansion beyond the Klang Valley through its first regional hub in Penang.

Pickupp will service the northern region with one warehouse, with plans to expand its warehouse footprint in the coming years to fulfill the demand for last-mile delivery to support the soaring growth of e-commerce and logistics, the company said in a statement.

This announcement follows its parent company, Pickupp Ltd’s, recent $15 million Series A and Series A+ financing.

This expansion is in line with Pickupp Malaysia’s vision of bringing affordable and efficient logistics services to businesses and consumers beyond the Klang Valley.

Through this northern hub, Pickupp continues to work closely with its strategic partners, including 3PLs, to uplift Malaysia’s delivery ecosystem that is experiencing growing demand due to the growth and maturity of e-commerce in the nation and across the world.

Currently, Pickupp is partnering with customers ranging from multinational logistics companies like DHL eCommerce and Aramex to leading e-commerce brands like Lazada, FashionValet, and more in Penang.

“This latest expansion of our last-mile delivery network puts our customers even closer to their end-customers in some of the most densely populated areas in Penang, where capacity constraints can be a daily challenge. Moreover, by increasing our footprint into the northern territory, we improve our customers’ speed-to-market, which is crucial in today’s highly competitive environment and vital to our customers’ short- and long-term growth strategies,” said Pickupp Malaysia Country Manager Navin Kandapper.

Through the expansion of Pickupp’s local operation in Penang, it is expected to create job opportunities for Penangites and offer localized services for customers in and around the region, the company said.

The company is also reaching underserved local communities through its Delivery Agent Acquisition Plan, which to date has benefitted 38,497 individuals.

“Logistics is one of the most challenging parts of the e-commerce puzzle, especially for smaller merchants. Pickupp helps them compete in the on-demand economy with flexible, customizable delivery services with an average saving of approximately 30 percent of conventional cost. This is made possible by proprietary software and batching technology that improves operational workflow for route optimization and warehouse management,” said Navin Kandapper.

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

Pickupp Malaysia, meanwhile, has seen a user base growth of 198 percent, creating earning opportunities for 38,000 independent delivery agents.

Pickupp is an on-demand delivery platform aimed to redefine logistics with its transparent customer-centric service and technology. Founded in 2016, the company has operations in Hong Kong, Singapore, Malaysia, and Taiwan, providing logistics support to 20,000+ businesses spanning MNCs, logistics giants as well as retail and e-commerce.

Pickupp to expand presence in Malaysia after completing Series A and A+ funding co-led by PChome, Cornerstone Ventures