J&T Express Middle East Secures Tens of Millions in Funding Led by eWTP Arabia Capital

Consumer Discretionary Author: EqualOcean News Editor: Danyun XIAO May 09, 2024 11:58 AM (GMT+8)

Recently, J&T Express successfully completed a funding round of tens of millions of dollars led by eWTP Arabia Capital and the Middle Eastern consortium. This investment aims to further expand its business in the Middle East and North Africa (MENA) region, enhancing operational efficiency in key markets such as the UAE and Saudi Arabia, and supporting the company's plan to list on the Saudi Stock Exchange. J&T Express went public on the Hong Kong Stock Exchange in October 2023, raising HKD 3.5 billion and achieving a market value exceeding HKD 60 billion.

Since entering the Middle East market in April 2021, J&T Express has rapidly expanded its service network. By January 2022, it officially commenced operations in Saudi Arabia and soon became the 20th operator in the country to receive both cross-border customs clearance and local delivery licenses. With its own end-to-end delivery network, J&T Express has achieved 100% coverage within Saudi Arabia. In February 2022, J&T Express established its regional headquarters for the Middle East and North Africa in Saudi Arabia, and in collaboration with the General Authority of Civil Aviation (GACA), signed a memorandum of understanding to jointly build the largest smart logistics industrial park in the region. In September 2023, J&T Express further strengthened its cooperation by signing a strategic agreement with the Saudi Arabian Ministry of Transport and Logistics Services in Beijing. As of February 2024, J&T Express ranks second in order volume in Saudi Arabia, just behind the established local company Aramex, with over 30% of its customers being local.

Jerry Li, founder and managing partner of eWTP Arabia Capital, expressed satisfaction with J&T Express's performance in the Middle East and plans to continue supporting the company's growth to solidify its market share. Despite challenges such as high cash on delivery (COD) rates and vague address information typical in the Middle East logistics market, J&T Express has successfully overcome these obstacles to become a major competitor. Moving forward, J&T Express plans to further deepen its localization strategy in the Middle East, enhance service quality, and actively push forward with its plans to list on the Saudi Stock Exchange. This will strengthen its competitiveness in the global logistics and e-commerce markets. eWTP Arabia Capital will also continue to support J&T Express’s development in the Middle East, helping Chinese businesses and products break market barriers, facilitating the landing of Chinese goods in Saudi overseas warehouses, and taking advantage of the free trade zone policies to transform the competitive landscape in the Middle East.