Revolutionizing the eCommerce last-mile & instant delivery market in Vietnam
Founded in 2015, Ship60 is a last mile delivery provider providing 60 minutes instant delivery services. Customers of Ship60 are E-commerce businesses such as Lazada (Rocket Internet, Alibaba) as well as retail players such as Vascara (fashion retailer with100+ stores ), Concung (baby product retailer with 500+ stores) . Ship60 is also proving its platform capabilities as a service to logistic companies such as Vientam Post (VNPost) to which Ship60 provides the technology platform to optimize last mile delivery.
In 2016 Fast Forward Advisors supported Ship60 while accelerated in VSV, focusing the activity on investor readiness, growth readiness (segments and channels), growth execution (growth tactics & execution) and operational KPIs.
“Working with FFA has been a great pleasure, during the acceleration program they helped us with a lot of know-how and methodologies. When working together on fundraising, they created several important connections with the investment community“Huy Phung | CEO | Ship60
PROBLEMS & CHALLENGES
The main problems of Ship60 in 2016 were the following:
Lack of differentiation: At that time, Ship60 was trying to acquire merchants that were already targeted by well-funded players in the country (Ahamove, Uber, Grab, etc), spending a lot of money and effort in fighting against bigger organizations. We therefore helped Ship60 to identify niches where to focus on (such as temperature controlled deliveries and big corporate accounts)
Small scale: The number of shippers and daily deliveries was very low compared to the performance of other competitors, raising questions and doubts by potential investors.
ACTIONS & SOLUTIONS
- Investor readiness: In order to prepare for the company for the demo day and fundraising, we applied the FFA Investor Readiness methodology in order to identify all gaps to be solved by the company prior to contacting potential investors. Some of the gaps were then closed by FFA with ad-hoc support (such as market research & opportunity quantification and competition analysis), while the remaining gaps have been closed by the Ship60 team following FFA guidelines.
- Testing growth on new customer segments: We supported Ship60 in developing and testing the value proposition with the new customer segments – translated into specific landing pages, presentations and outreach material. The tests created interesting tractions that allowed us to create a basis for an interesting investment case
- Corporate offering definition: We supported Ship60 in designing and testing new corporate offering for its platform as a service product – from the early offering definition to the first deal closing support
IMPACT & OUTCOME
- Demo day and investments: Ship60 arrived at VSV demo day with an investor readiness pitch deck and attracted the attention of several investors
- Angel investment: Following the demo day, Ship60 raised an undisclosed angel investment round.
- Seed investment: FFA kept supporting Ship60 after the first investment, preparing and executing a seed investment round which is still ongoing