Ninja Van axes 12% of Singapore staff amid US$80 million fundraising
The current development at the logistics startup is the latest sign of tech companies struggling to navigate the funding winter plaguing South-east Asia.
Singapore-based Ninja Van, backed by Alibaba Group Holding, is set to raise US$80 million in a round that will reduce its valuation to about US$1 billion, said sources 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 sources, who asked not to be named because the information is private.
CNA on Tuesday (Aug 12) reported Ninja Van's latest retrenchment, which the company said was 'not made lightly' and are part of a long-term effort to strengthen its business model and ensure sustainable growth. Ninja Van added that it undertook a 'strategic restructuring' of its teams.
'Unfortunately, despite our efforts to minimise impact, we were unable to avoid layoffs; and this has impacted an estimate of 12 per cent of our colleagues in Singapore,' it told CNA.
The latest round of job cuts follows layoffs in April and July last year, affecting the company's regional tech team and Singapore-based workforce, respectively.
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In its latest fund raising, investors in this round secured favourable or preferential terms for a future exit, according to sources. 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 South-east Asia technology industry has been plagued by job cuts, CEO resignations and falling startup 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 is losing its lustre. While e-commerce is gaining popularity in the region of more than 650 million people, stiff competition and deep-pocketed players such as 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 South-east Asia and delivers two million parcels a day, indicated 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. BLOOMBERG
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