This funding comes 4 years after Zepto’s launch in 2017, the place co-founder Izzairi Yamin is now seeking to develop past last-mile deliveries. He’s additionally hoping to develop Zepto’s protection to extra areas in Malaysia and ultimately Vietnam.
Rising independently for 4 years
Ficus Enterprise Capital (Ficus) is a neighborhood personal firm that manufacturers itself as the primary Shariah-compliant VC within the area. The agency focuses on development investments to help early-stage tech startups within the ASEAN area.
Previous to this funding, Zepto instructed Vulcan Publish that they’ve solely ever raised funds via angel traders to channel into rising the corporate organically in its early days. Beginning out as ZeptoBike, the platform was primarily an on-demand supply service to move small packages, just like Lalamove or GrabExpress.
Izzairi additional defined that regardless of numerous provides from different VCs up to now, he couldn’t agree with any of the phrases that have been provided to him. “We tried our absolute best to self-sustain and make sure the firm stays afloat with none exterior funding injections, solely specializing in growing our revenues and making income,” he recounted.
“However now, we really feel it’s excessive time for us to get funding and develop our companies and choices past what we have now at the moment been doing all these years with the appropriate valuation and worth.” Izzairi is assured that with the appropriate steerage from Ficus, the corporate can speed up its development.
Shifting gears into an end-to-end logistics service
We final spoke to Zepto in 2020, once they had pivoted to begin promoting groceries on-line throughout MCO 1.0. Regardless of the service serving to them obtain a sudden spike in income through the lockdown, the pattern instantly plummeted after motion restrictions have been lifted.
Although they’ve halted the service in the meanwhile, Izzairi shared that this pivot was one in all his proudest moments for the corporate through the pandemic. “We managed to set all the things from floor zero inside 3 days and kick off the brand new service very quickly, which has tremendously elevated our income by 10 occasions through the pandemic,” he stated.
As on-line buying has as soon as once more spiked with MCO 3.0 limiting motion, retail shops massive and small should shut and transfer on-line. To get their merchandise to prospects, they want a intermediary to ship, and Zepto is planning to fulfil that actual want.
Now with a 7-figure sum raised, Izzairi is planning to arrange extra mid-sized fulfilment hubs and develop Zepto’s protection to extra excessive density areas. These hubs will principally be a spot for Zepto’s workforce to carry out sorting and zoning for parcels to be delivered inside cities and interstate.
“We noticed there was demand from the market, and since we have been already doing final mile deliveries, we thought why not we enterprise into fulfilments as nicely? It’s a service that compliments our fleet and your entire course of for a supply,” defined Izzairi.
Zepto’s goal now could be to onboard extra SMEs whereas the e-commerce development is on an upward pattern once more. This end-to-end service shall be provided in KL, Johor, Penang, and Ipoh, earlier than increasing to Vietnam.
The workforce is selecting Vietnam as they’ve already been serving fulfilments for fairly a variety of Vietnamese firms which are in Malaysia. Extra so, the last-mile supply in Vietnam has modified tremendously in a constructive manner over the previous couple of years, in response to Izzairi.
Since ZeptoExpress’ enterprise mannequin could be operated simply with the assistance of the software program that we’ve constructed all through the years and doesn’t require an enormous workforce to function it, we really feel that Vietnam is an appropriate nation for us to step in. The price for working there’s not excessive versus the potential of income in comparison with different nations.
Izzairi Yamin, co-founder of ZeptoExpress.
- You’ll be able to study extra about ZeptoExpress right here.
- You’ll be able to study extra about Ficus Enterprise Capital right here.
Featured Picture Credit score: Izzairi Yamin, co-founder of ZeptoExpress