Singapore's Parcel Perform to expand after $20 mil. funding as Asia-Pacific logistics boom
By Celine Chen
SINGAPORE, NNA - Logistics tech startup Parcel Perform will set up a regional headquarters in North America and enhance its presence in Asia and Europe after securing $20 million in Series A funding.
It was led by Cambridge Capital, with new investor SoftBank Ventures Asia participating alongside existing investors such as Wavemaker Partners and Investible, said the Singapore-based firm which provides a carrier-independent parcel tracking service for e-commerce companies worldwide.
Set up in 2016, the already profitable startup said it will use the funds from the global blue-chip investors to drive expansion and technology innovation as it caters to the pandemic-driven boom in the global e-commerce and logistics sectors.
Operating a cloud-based platform, Parcel Perform works with more than 700 carriers to enable online merchants to improve their end-to-end delivery services.
In a press release on August 11, Parcel Perform said it currently manages over 100 million parcel tracking updates daily, providing real-time visibility of tracking data and helping businesses to "increase customer lifetime value by up to 40 percent".
Besides optimizing logistics operations with powerful data integrations, it also offers delivery notifications and logistics performance reports in real-time.
"Already profitable, Parcel Perform continues to see stellar growth, with revenue growing by five times since the onset of the COVID-19 pandemic," said the startup.
Cross-border e-commerce logistics market in the air freight and logistics industry is expected to grow by $44.61 billion during the forecast period of 2021-2025, progressing at a compound annual growth rate of almost 11 percent, according to research firm Technavio.
However, the Asia Pacific region will see the highest incremental growth of 43 percent, it said, adding that increasing penetration of mobile computing devices and the growth of e-commerce startups will boost the market further.
With the new funding, Parcel Perform will boost its tech solutions and invest more in artificial intelligence. This includes scaling its proprietary ‘date of arrival’ prediction engine which allows customers to know precisely when their parcels will arrive.
The company, which also has offices in Vietnam and Germany now, will grow its staff strength from over 100 employees across Asia-Pacific and Europe currently to 150 globally by the end of the year.
Arne Jeroschewski, CEO and co-founder of Parcel Perform, said, “With e-commerce becoming the primary retail channel, the need for merchants to provide an excellent post-purchase experience has become business critical. Parcel Perform is uniquely positioned to capitalize on this opportunity with its enterprise-grade solutions and its globally standardized logistics data integrations."
Chief customer officer and co-founder Dana von der Heide said Parcel Perform expanded their customer base from their roots in Asia to working with leading brands, marketplaces and carriers in Europe and North America.
Benjamin Gordon, managing partner of Cambridge Capital which invests exclusively in global logistics and supply chain technology, said, "After evaluating many companies worldwide, we believe that Parcel Perform simply offers the best visibility and experience solution. They have built a unique value proposition for brands, marketplaces and carriers, with the most complete solution for end-to-end shipment tracking."
The startup will continue to expand its strong network of partners and integrations with companies such as AWS and SAP.
Parcel Perform recently extended its B2C website Parcel Monitor, originally a tracking service for end-consumers, into a global community platform offering free access to logistics data insights for e-commerce logistics professionals.
Cindy Jin, partner at SoftBank Ventures Asia, the early-stage venture capital arm of Japan's SoftBank Group, said Parcel Perform was committed in not only launching "an enterprise-ready and scalable, modular platform", but also building a global community for e-commerce professionals.
"Their passion for the industry, hyper global approach and diverse team enable them to provide features that will change the experience for all stakeholders in last mile delivery. We are excited to partner with them and help them drive their next chapter of innovation in e-commerce logistics,” said Jin.
Among Parcel Perform's customers are Nespresso, Waterdrop and idealo.
Davide Costella, global delivery services manager at Nespresso, said the Parcel Perform platform is its global track-and-trace solution.
"With the help of their streamlined data in 30 plus languages and sophisticated product suite, we are creating excellent post-purchase experiences but also getting real insights into actual carrier service level compliance which helps us drive continuous improvement and better rates," said Costella.
A 2019 logistics tech trends report by Front, an email platform, noted that the transportation management system (TMS) market was flooded with thousands of options.
But many either fail to deliver solutions that can manage complex supply chains or offer tools that ignore the shipper's pain points.
Among those which have emerged with innovative solutions is California-based ZUUM Transportation. Using its Beyond TMS platform, shippers can extend and enhance existing transportation management systems or work on it as a complete standalone system.
With real-time visibility, workflow automation and connected data flow, it offers capacity access, actionable intelligence and freight network control beyond the capabilities of traditional systems.
In April, LogiNext, a global logistics tech firm, partnered with Daraz, a leading shopping-commerce platform owned by China's Alibaba Group, to roll out the LogiNext Mile platform to optimize last-mile deliveries.
Daraz has created Asia's largest e-commerce carrier aggregation network using the platform after having automated millions of orders over the past four years.
Mradul Khandelwal, vice president of business development at LogiNext, said, "LogiNext's Mile platform has been leveraged by several premier e-commerce giants across the globe. This partnership with Daraz has helped us solve some very real on-the-ground logistical issues native to Asia Pacific."
In June, MySize Inc, Nasdaq-listed developer of smartphone measurement solutions, collaborated with India's largest supply chain services provider, Delhivery, to boost its operational efficiency using MySize's AI-driven parcel measurement tool, BoxSize.
MySize said in a press statement, "It increases delivery efficiency by helping operations teams ensure that a truck is properly packed to use each inch of available space. Additionally, BoxSize offers features such as barcode scanning, geolocation tagging, and image capture."