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Indonesian logistics company J&T raises $2.5 billion ahead of Hong Kong IPO

November 25, 2021 6:13 pm

J&T Express, an indonesian logistics startup recently raised $2.5 billion from major investor including Boyu Capital, Hillhouse Capital, Sequoia Capital and Tencent Holdings and SIG China. The new proceeds puts J&T Express’s valuation at $20 billion, according to a Sina report.

The new financing comes just ahead of the company’s HK IPO plan. Previously, the company planned to go public in the U.S. However, J&T Express adjusted its plans earlier this year and intends to go public in Hong Kong instead.

Founded in 2015, J&T is the brainchild of Jet Lee, OPPO Indonesia’s Ex-CEO and Tony Chen, founder of OPPO International. The company focused on logistics and package delivery in Indonesia at first, then expanded to Malaysia and Vietnam in 2017, the Philippines and Thailand in 2018, Singapore and Cambodia in 2019, and China in 2020, according to the company’s website. The company's daily order volume in China has reached 22-25 million, according to a Late Post report. 

J&T Express was able to expand rapidly in China, due to its collaboration with Pinduoduo, an online shopping app featuring low-cost products with 700 million MAU; as well as its competitive pricing. According to a previous PingWest report, J&T Express offered shipping services for as little as 1 RMB ($0.15) per regular package, which prompted other couriers in China such as ZTO Express and STO Express to lower their pricing as well, to 1.5RMB per package. Such strategy was called off by regulators in April. J&T Express was order to shutdown and rectify the conduct of several of its distribution centers in Yiwu.

In order to stay competitive in China, a market which logistics flourishes with the aid of e-commerce, J&T Express acquired local company BEST Inc’s domestic business unit in October. According to the company, as of August this year, it has established 74 transit centers nationwide, built 56 sets of intelligent equipment, and has deployed more than 3,000 transportation vehicles.

J&T Express is also eyeing expansion in Latin America, as its top client, South East Asia’s most notable online shopping platform Shopee has made the Latin American market one of its top priorities, according to Late Post.