- Malaysia has the highest percentage of digital customers in Southeast Asia, with over 83% of the population, or over 21 million customers, making their purchases online
- With Malaysia’s boom in e-Commerce, Shippit will leverage its technology and new partnership to enable on-time deliveries and improved overall customer experiences
- Through the partnership, Ninja Van’s Cash On Delivery (COD) capabilities can be easily accessed by merchants through the Shippit platform, allowing online businesses to tap into an unbanked and underbanked population in Malaysia and across Southeast Asia
- Partnering with Shippit enables Ninja Van to more easily access the growing Small to Medium Business sector across Malaysia
- The logistics startup’s expansion in Malaysia marks its second market launch in Southeast Asia in just two months, with future plans to hire local talent in sales and marketing
Kuala Lumpur, Malaysia, 27 Aug 2020 — Today, fast-growing logistics technology company Shippit, announced its expansion into Malaysia, as well as new partnerships with regional-serving courier Ninja Van. Shippit’s latest announcement marks its second Southeast Asian market expansion in just 2 months as it continues its growth in the region.
Founded in 2014 in Australia, the logistics Software-as-a-Service (SaaS) company has raised almost US$10 million, led by Asian investment firm Aura Group. By using automation and machine learning to simplify the order fulfilment process, Shippit serves more than 6,000 customers a month across Australia, New Zealand, and Southeast Asia, powering delivery for Sephora and CottonOn, among thousands of other leading retailers. It recently announced the launch of its Southeast Asian headquarters in Singapore, partnering with Shopify regionally and SingPost in Singapore.
With 83% of its population making purchases online, Malaysia has the highest percentage of digital customers in the region, and an e-Commerce market valued at approximately US$4 billion in 2020. This figure is expected to more than double to US$8.1 billion in 4 years, making Malaysia one of the largest and fastest-growing markets in Southeast Asia.
Lavneesh Arora, Director of Market Development at Shippit, said: “Malaysia is experiencing a surge in online retail transactions, which started when the Movement Control Order (MCO) was implemented earlier this year to curb the spread of Covid-19. While this is a great opportunity, this brings another challenge to the fast-growing e-Commerce market, as many have not been able to adapt, causing delays and negative customer experiences.”
Through Shippit’s expansion into Malaysia, the logistics tech startup plans to tap into Malaysia’s e-Commerce market, focusing on improving delivery experiences for end customers and helping local online businesses grow by offering more delivery options to customers at the check-out whilst streamlining how they fulfil their orders. Shippit’s platform
makes Ninja Van’s Cash on Delivery capabilities easily accessible to online businesses of all sizes, allowing them to drive their growth amongst unbanked and underbanked populations in Malaysia and throughout Southeast Asia.
Shippit’s new partnership will enable the regional courier to expand its market reach with Small to Medium business in Malaysia, deepening Ninja Van’s e-Commerce presence. As Shippit aims to support e-Commerce growth across the region, simplifying access to Ninja Van’s delivery services and Cash On Delivery capability through Shippit’s platform will be hugely beneficial to growing online businesses.
Speaking on the launch of their partnership, Adzim Halim, CEO of Ninja Van Malaysia, said: “We’re excited to be collaborating with Shippit as they step foot into the Malaysian market. With more people shopping online nowadays, we understand that great e-Commerce experiences need to be paired with great shipping options. As a tech-enabled express logistics company, we will be working hand-in-hand with Shippit to liberate businesses from logistical pain points, allowing them to focus on growing their businesses.”
Although Malaysians are generally digitally-savvy with an internet penetration of 80.1% and mobile commerce accounting for 47% of the total e-Commerce market, only 45% of the population is fully banked. There are currently a total of 12 million people in Malaysia that are underbanked and unbanked, with a preference for cash payments.
Adzim added, “Through our partnership with Shippit, we will be offering Malaysians the option of Cash On Delivery (COD), thus opening up another payment method to the underbanked end customers, and allowing e-Commerce merchants to reach a previously untapped segment of the market. This is in line with our commitment to provide all customers a convenient and hassle-free delivery experience, through one delightful delivery at a time.”
As a fast-growing startup taking on Asia, Shippit has its eyes set on improving retail logistics in countries like the Philippines and Indonesia. To accelerate its growth ambitions across Southeast Asia during the e-Commerce boom, Shippit is evaluating a potential capital raise before the end of 2020, where it would look to raise in excess of RM$30 million.
Shippit is a scalable shipping platform that can be used by enterprise-level firms, fast-growing small and medium enterprises (SMEs), as well as e-Commerce businesses just starting out. From multi-channel, international retailers to homegrown sellers, Shippit unifies order fulfilment across sales channels and leverages its proprietary allocation algorithm to connect retailers to the best delivery partner for every single order.