Logistics start-up Ninja Van is in talks to raise an internal round which will slash its valuation by about half, the latest sign of tech companies struggling to navigate the funding winter plaguing Southeast Asia.
Singapore-based Ninja Van, backed by Alibaba Group Holding, is set to raise US$80 million ($102.70 million) in a round that will reduce its valuation to about US$1 billion, according to people familiar with the matter.
Existing investors B Capital Group — the venture capital firm set up by Meta Platforms co-founder Eduardo Saverin and Raj Ganguly — as well as Monk’s Hill Ventures will be leading the round, said the people, who asked not to be named because the information is private.
Investors in this round secured favourable or preferential terms for a future exit, according to the people. A spokesperson for Ninja Van declined to comment. B Capital and Monk’s Hill did not respond to requests for comment.
Ninja Van is raising capital during one of the hardest possible times for fledgling firms. The Southeast Asia technology industry has been plagued by job cuts, CEO resignations and falling start-up valuations amid prolonged global macroeconomic uncertainties, making it difficult for companies to secure funding or debut on public markets.
Shares of regional tech peers Grab Holdings and GoTo Group have underperformed compared to Big Tech in the US as they work to balance growth and profitability in a region that’s losing its lustre.
While e-commerce is gaining popularity in the region of more than 650 million people, stiff competition and deep-pocketed players like J&T Global Express and Sea’s SPX Express have kept profit margins slim in the logistics industry.
Founded in 2014, Ninja Van operates in six markets in Southeast Asia and delivers 2 million parcels a day, according to its website. It raised US$578 million in a Series E round in 2021 from participants including Alibaba and B Capital Group. The round lifted the company’s valuation to well beyond US$1 billion, Bloomberg News reported earlier.
