Qxpress secures USD 50 million boosts to win cross-border logistics race
Qxpress Pte Ltd (Qxpress), an international logistics service provider and subsidiary of pan-Asian e-commerce platform Qoo10 Pte Ltd, has successfully secured a USD 50 million investment. The funding is led by private equity investment firm Crescendo Equity Partners, with Goldman Sachs and Dechert LLP serving as Qxpress’ financial and legal advisors respectively. It provides Qxpress with the resources needed to double down on its mission of building a reliable and secure logistics network, to provide cross-border delivery services at highly affordable prices.
A brief history
Established in 2011, Qxpress has since made its name over the last 8 years as a logistics gateway between Southeast Asian online shoppers and the world. Plying six key routes across eight countries in Southeast Asia, North Asia, and the USA, Qxpress empowers e-commerce merchants to reach an effectively global customer base, with 11 delivery-processing centres (DPCs) across key markets, and its suite of logistics and distribution services. Today, Qxpress is able to complete 97.5% of cross-border deliveries to Singapore within 4-5 days, at less than half the price of comparable services offered by other major logistics players.
A great milestone
“As demonstrated by its impressive volume growth and deep customer satisfaction, Qxpress has established itself as a central player in cross-border e-commerce logistics,” says Dr Kevin Lee, Managing Partner of Crescendo Equity Partners. “We are honoured to be a part of Qxpress’ journey, and have every confidence that they will use our investment prudently to expand its service capability and build a lasting foundation loved by Asian e-commerce participants.”
“We are deeply humbled by the trust that Crescendo Equity Partners has placed in our mission and vision,” said Mr Ku Young Bae, CEO and Founder of Qxpress and Qoo10. “Qxpress will continue striving tirelessly towards its vision of a world where online shoppers see no logistical difference between making international and domestic purchases.”
A bright future
Building on these foundations, Qxpress will primarily use its new funds to strengthen and expand its cross-border logistics network, covering pick-up, fulfilment, integrated customs clearance, air/sea freight, and last mile delivery for e-commerce in destination markets. This currently includes Singapore, Malaysia, Indonesia, Korea, Japan, China and the USA, with plans to avail these services in more countries within Southeast Asia, as well as Taiwan and Hong Kong. It plans to do so while continually seeking out ways to optimise its processes, allowing them to keep costs low, and to pass the savings on to users in the form of increasingly affordable fees. Qxpress also plans to expand its user base by gradually opening these services to other e-commerce platforms and their merchants within Southeast Asia.
Qxpress is also working to expand its range of warehousing and fulfilment services, which selectively offers storage, inventory management, and fulfilment services for products with a proven sales record. Inventory risk for these services are minimised, thanks to the inventory management system intelligently ordering a new batch of products based on the sales metrics from the previous batch. These services are currently available in Singapore and Japan, with plans to roll out to future markets soon.
In Singapore, Qxpress has also built a name as a leading company for last mile logistics, establishing reliable domestic delivery services within 2-3 days. It also offers door-to-door delivery and courier services, known as Qx Quick and Q Delivery respectively, for valuable items or sensitive products such as perishable food. With its newly available resources, Qxpress plans to offer these services to other customers in the e-commerce market.