HANOI — Vietnamese e-commerce startup Loship with one-hour delivery is reportedly seeking debt financing instead of moving forward with a Series C equity financing round, DealStreetAsia has learned.
In October 2021, DealStreetAsia reported that Loship was in preliminary talks with Japanese group Daiwa Securities and other investors to raise $50 million in a Series C round after the online delivery startup landed $12 million. in a pre-Series C funding round co-led by Ant The BAce Capital Group-backed venture capital firm and the investment unit of Sun Hung Kai & Co., a listed alternative investment firm Hong Kong.
“In times of uncertainty like this, businesses go into survival mode rather than fundraising mode, and debt financing is a smart choice for [extending the] track,” a source close to the company said.
Loship did not immediately respond to a request for comment. DealStreetAsia has also reached out to Loship investors.
The Ho Chi Minh City-based company has also raised funds from investors including MetaPlanet Holdings, a venture capital firm backed by Skype co-founder Jaan Tallinn; Saudi Arabia’s Well of Wealth; South Korea’s Smilegate Investment, Hana Financial Group and DTNI, as well as Singapore-based startup venture capital firm Golden Gate Ventures.
Founded in 2013, most of Loship’s business comes from delivering groceries and packed lunches. It also transports flowers, medicines and other low-volume, high-margin items from warehouses to buyers.
In August last year, Nikkei Asia announced that Loship was targeting a U.S. IPO by 2024 after achieving profitability.
In addition to conventional equity funds, alternative capital providers in Asia include ADB Ventures, Innoven Capital, OCP Asia, Genesis Alternative Ventures, Alteria Capital, EvolutionX, backed by Temasek and DBS, and Abound Capital. ADB Ventures, the venture capital arm of the Asian Development Bank, plans to hold the first closing of its $100 million debt fund this year.
InnoVen Capital recently joined Japanese bank Aozora as a sponsor of its upcoming Southeast Asia venture debt fund. The company secured an initial $50 million closing of the vehicle in October last year, after securing capital from Temasek Holdings, which is among its top long-term investors.
Meanwhile, OCP Asia, which invests in the Asia-Pacific region, raised nearly $100.8 million last November for its OCP Asia Opportunities Fund.
In December, DealStreetAsia also announced that Abound Capital’s first Singapore-based fund, Abound Capital Master Fund I, would deploy up to $100 million.
In Southeast Asia, debt financing reached $610 million in the first quarter of 2022, compared to $50 million, $90 million and $380 million respectively in the previous three quarters, but remained low compared to 2.06 billion raised in the first quarter of 2021, according to the report “SE Asia Deal Review: Q1 2022.”
For the original DealStreetAsia story, click here.
DealStreetAsia is a Singapore-based financial news site that focuses on private equity, venture capital and corporate investment activities in Asia, particularly Southeast Asia, India and the Greater China. Nikkei holds a majority stake in the company.