The Southeast Asian market has always been a hot spot for cross-border service providers as well as brands.
Southeast Asian cross-border logistics and warehousing service provider Yuancang Warehouse (Chinese: 元仓海外仓), recently announced the completion of an angel round of financing from K2VC, with Shanyu Capital acting as the exclusive financial advisor.
The funds raised in this round will be used for warehouse logistics construction, system research and development, sales and company operations.
Established in 2022 and headquartered in Shenzhen, Yuancang Warehouse mainly provides integrated warehousing and logistics services plus value-added services for online vendors targeting Southeast Asia. The company has also completed connections with major e-commerce platforms in Southeast Asia such as Shopee, Lazada and TikTok.
Based on the current situation of the development of warehousing and logistics in Southeast Asia, Yuancang plans first to set up a five-country first-class warehousing and logistics system in Malaysia, India, Philippines, Vietnam and Thailand, with 20 warehouses covering an area of 100,000 square meters. The daily processing capacity is expected to reach 300,000 orders.
"From the long-term perspective, I believe that professional third-party cross-border warehouses service providers may become the future," the founder and CEO of Yuancang said in an interview. "This is a business with a high threshold and requirements in terms of management ability, cost control, service quality, localization, resource management and customer acquisition ability."
In the next phase, the company will continue to improve its warehousing system, aiming to cover 80% of the population in Southeast Asia's e-commerce market, building 200 warehouses with an area of 1 million square meters and a daily order processing capacity of 3 million orders.