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SUMMARY

TheLorry (Company name: The Lorry Online Sdn Bhd) is South-East Asia’s leading and award-winning technology asset-light platform focused on bulky next-day delivery and on-demand same-day delivery.

With a strong market share in the bulky next-day delivery segment in Malaysia and 4x growth recorded in Indonesia, we are seeking fresh capital to further our aggressive expansion into Indonesia.

Executive summary:

• Problem: TheLorry aspires to solve key problems faced by stakeholders within the logistics industry including affordability, availability and price transparency.
• Solution: We have created a platform that connects 11,000 corporate customers, over 200,000 individual customers to 13,000 driver-partners under our platform with millions of parcels delivered to date.
• Product: Our products use the power of technology and data to make them easy and seamless. We plan to introduce new innovations and enhance our proprietary products further in the future.
• Traction: For the past 4 years, we have charted 65% CAGR and we project a Group Revenue of RM65 million in 2022. From virtually nothing, TheLorry Indonesia is now contributing ~40% to our Group Revenue.
• Customer: We serve both Corporate and Consumer segments and acquire them through word of mouth as well as digital and offline marketing.
• Business Model: We earn a commission or markup for every transaction.
• Market: We are present in 4 markets - Malaysia, Indonesia, Thailand and Singapore. We intend to capture 3 major trends in the next 5-10 years - e-commerce, bulky item deliveries and the rise of Indonesia. We have also secured Strategic Partnerships with Wahana Express and Cahaya Express in Indonesia.
• Competition: We compete with various traditional and digital logistics companies in all markets we have operations. Our edge is derived from being focused on bulky items and creating cross-selling opportunities between next-day and same-day delivery services.
• Funding: We intend to raise up to RM5 million for working capital and expansion plans in Indonesia.
• Vision: Our vision is to be the #1 bulky supply chain player in South-East Asia with US$100 million (RM440 million) in Group Revenue by 2026. We aspire to go for an Initial Public Offering (IPO) in the future and this ECF campaign is a step closer to that.
• Investors: TheLorry is backed by credible institutional and individual investors such as First Floor Capital, PNB-Inspire Ethical Fund, Axiata Digital Innovation Fund, SPH Ventures, etc.

PROBLEM

It all started with a very simple thesis back in 2014.

“Technology can be used as an enabler to improve logistics's processes and create cost efficiencies”

With this thesis in mind - TheLorry began its journey in one of the subsets of logistics - land logistics - targeting end consumers. More specifically, we started our maiden venture in the movers or ‘lori sewa’ (lorry rental in Malay) business.

It is to be noted that at this time, e-commerce was still in its infancy and the “Uber for X” movement has only just started to gain traction.

1) The Initial Problem: Consumers

We found that consumers, more specifically young professionals, when looking to move house or furniture were generally frustrated at:

• the lack of transparent/itemized pricing by unscrupulous providers;
• affordability of house moving services;
• vehicle availability issues - not all providers are available on a particular day (typically Saturday);
• overall bad user experience.

2) Corporates: Pain of Insourcing vs Outsourcing

Fast forward a few months upon inception and after multiple product iterations, we discovered exciting opportunities within the Corporate (B2B) segment. We found a whole set of problems faced by both Small and Medium Enterprises (SMEs) and Multinational Corporations (MNCs).

These Corporate clients, when insourcing their logistics face:

• driver management issues;
• inadequate capital to scale up vehicle purchases;
• expensive vehicle maintenance.

In this case, outsourcing is the preferred option where service quality and price become key procurement factors.

3) Big products, Big problems

Another subset of Corporate clients that we found a significant opportunity in was the Furniture & Home Appliances segment, especially those selling via e-commerce.

These merchants, typically distributors or retailers who sell their products online, face significant pain when sourcing for ‘bulky’ (defined as items 15kg and above) delivery options. Some of them require space to store these big and bulky products too.

Most courier players in the market do not provide bulky door-to-door service at an affordable price at the required service level.

4) Underappreciated Community: Lorry/truck drivers

The lorry/truck driver profession, not just in Malaysia but in Thailand, Indonesia and the Philippines faces less than favorable perception issues.

It is unfortunate as this community is extremely hardworking and contributes greatly to each nation’s economy.

A case in point, in November 2022, South Korea’s truckers had a strike over minimum wages, costing the nation over $220 million in losses per day.

This strengthens the view that lorry/truck drivers are the backbone of any nation and must be provided for and upskilled. We would like to be the pioneer in solving this problem.

SOLUTION

Over the past 8 years, we sought to solve the above four problems highlighted above through technology and by creating an asset-light business model.

We created a digital platform that connects over 11,000 corporate and 230,000 individual customers with our network of 13,000 professional driver-partners.

Operations are then optimized further through the power of data analytics - building in-house descriptive and predictive abilities.

Our solutions are recognized by the market with an average of 4.7 stars rating on Google with over 13,000 unique raters and an internal NPS score of 58.17 (industry standard: 38)

PRODUCTS

The above is a flowchart depicting our product ecosystem and our services in the supply chain. This includes Same-Day Delivery and Bulky Next Day Delivery services.

Same Day Delivery service refers to when a Merchant/Seller would like to deliver their products fast and on-demand. They would use our website and app to book and get assigned to a driver-partner within seconds. Items would then be picked up and delivered within the same day. Typically this service would be charged on a per-trip basis. Service in this category also includes House Moving uses cases.

Bulky Next Day Delivery services refers to when a Merchant/Seller would like to deliver their products to many different addresses and would like to pay on a per item/kg basis. Items would be picked up by our First Mile team, brought over to our Central Hub for zone sorting and forwarded to our Mini Hub Partners for final sorting and last-mile delivery to the buyer/receiver. As part of this service, we also provide Fulfilment services for Merchants/Sellers who would like to use our warehouse space.

Same Day Delivery: House/Furniture Moving

Through initially a web platform and eventually a mobile app, we have managed to solve consumer’s pain points during house moving by providing:

• Instant quotation and a guarantee of ‘what you see is what you get
• Multiple options and various services including manpower, assembly/disassembly, wrapping and disposal of furniture;
• A driver-partner algorithm that leverages the feedback loop between rating/review by consumers and driver-partner’s ability to accept jobs on the platform
• Tracking capabilities to improve consumer experience
• Easy-to-use User Interface (UI)
• Verified and professional driver-partners that are specialized in house/furniture moving
  

Same/Next Day Delivery: TheLorry for Business

TheLorry for Business (T4B) is a product created to cater to both SMEs and MNCs who are looking for affordable and efficient delivery/trucking solutions.

We solve their problems through:

• An integrated and easy-to-use platform that is affordable
• Provide both FTL (same-day delivery) and LTL (next-day delivery) solutions
• Proof of Delivery (POD) capabilities
• Track and trace capabilities
• Automated statement and invoicing capabilities

Bulky Next-Day Delivery & Fulfilment

Through our proprietary Transport Management System (TMS) and Warehouse Management System (WMS) we created a solution for furniture & home appliance merchants to deliver their products door-to-door at an economical rate.

Through this app we are able to:

• View, manage and edit details of all tracking numbers or parcels assigned by our clients
• View the historical timeline for every tracking number including parcel status, last PIC to handle the parcel, key dates
• View parcel aging status including time elapsed since hub inbound/outbound
• View parcel traffic on a per lane/zone basis

Eventually, we developed fulfillment solutions for our clients who wish to focus their business on selling products and less on logistics and warehousing.

Staying true to our asset-light model and leveraging technology, we utilize a network of hub partners all over Malaysia and route optimization to create a better delivery experience.

Driver-Partner Ecosystem

Through our driver-partner ecosystem, we not only create solutions to provide our driver-partners with more income but provide them with opportunities to improve their level of professionalism and reduce costs.

This includes route optimization, partnership with financing institutions, vehicle breakdown services and discount/loyalty programs.

Future Product Plans

We do not plan to stop here in terms of realizing our company vision.

With all the product capabilities built so far, we intend to expand our reach by creating new products and services that create significant value-add to the logistics industry. They include:

• Expand the current products into Software-as-a-Service Model
• Since day one, we have focused on building technology with a service-based architecture that prioritizes scalability and flexibility. This approach allows us to quickly create new SaaS products, such as our Transport Management System, Warehouse Management System, and Route Optimization System. It also enables us to easily modify and expand these products without disrupting the entire system. Our service-based architecture allows us to rapidly develop and deploy new features, making us well-positioned to continue growing and innovating in the SaaS market.
• Build innovative products to improve drivers’ productivity.
• We are a company that uses cutting-edge technology to unlock the full potential of its driver-partners. By leveraging driver-partner’s personal and behavioral data, we can improve their productivity and efficiency using machine learning algorithms. Our data-driven approach allows us to identify trends and patterns in driver-partner’s performance, and develop targeted interventions to help them succeed.  Our goal is to transform this idea into a truly global product for drivers to be used globally.
• Improve current product and operations
• We intend to further improve our operations by investing in RFID tags to optimize and track parcel movements in our sorting centers, utilizing AI Dimension Measurer to utilize computer vision and LiDAR to identify the length, width and height of bulky parcels and load optimization to dynamically determine the most optimized parcel arrangement in a truck based on drop-off addresses.

TRACTION

TheLorry has grown over 7x in revenue or just above 65% CAGR (Compounded Annual Growth Rate) from 2017 to 2021. Despite the challenging macro environment, we project to close 2022 higher than 2021 driven by stronger Indonesian revenue contribution.

TheLorry has successfully transformed itself from being Consumer-focused to Corporate-focused from 2018 onwards. Corporate, which used to contribute less than 50% of revenue, is now our primary revenue generator at 84% contribution.

We entered the Indonesian market in 2018 with the goal to understand the market while building our network and operations. It took 4 years of hard work and persistence to achieve scale and contribute meaningfully to overall Group Revenue.

CUSTOMERS

We target both individual and corporate customers under our 3 main services:

House/Furniture Moving

• Young families and professionals
• Students

The majority of our customer acquisition channels come from organic/mouth-to-mouth, Search Ads, Social Media Ads and various partnerships with top brands.

TheLorry for Business

• SMEs and MNCs in various industries including F&B, FMCG, event, distribution, retail, automotive, etc.

We acquire clients for this product through face-to-face interactions, Search Ads, Social Media Ads and email nurturing campaigns.

Bulky Next-Day Delivery

Retailers and distributors in various industries furniture, home appliance, automotive, exercise equipment, etc

We acquire clients for this product through face-to-face interactions and organic methods.

BUSINESS MODEL

Business Model

Our business model is simple. They are:

• Collect commission from driver-partner

For example, a same-day delivery transaction that costs RM100 will allow us to earn between RM15-RM20.

• Charge a markup/cost-plus to clients

For example, a special project requires more specialized and bespoke services for our clients. Assuming our driver-partner's' cost is RM100 we will turn around and mark it up to RM120-130

Next-day delivery services are however calculated based on weight/dimensions, therefore, a 20kg item may cost RM20 to the client and we will earn a cost-plus margin of between RM2 - RM6.

All prices and margins are based on demand/supply dynamics and we utilize data analytics to determine the most optimum level of price and margin.

The same model is applied across all the countries we operate in.

MARKET

TheLorry currently operates in 4 major markets:

• Malaysia - All 13 states
• Indonesia - 21 first and second-tier cities
• Thailand - Greater Bangkok
• Singapore
  

We intend to capture three major market opportunities in the next 5 years:

• E-commerce. We are bullish on the long-term e-commerce prospects in all of South-East Asia. The spillover effects from strong e-commerce will benefit both same-day and next-day delivery deliveries.
• Bulky items. We are equally bullish on big and bulky delivery items as over time SEA customers learn that buying bulky items online is much more convenient compared to physical outlets. As a comparison, 60% of furniture sold in China is via online channels. Besides, e-commerce platforms are motivated to sell bulky items due to their higher GMV and margins.
• Indonesia. We find that Indonesia presents greater opportunities for growth with its very fragmented market and pockets of opportunities. A combination of strong FDI and a growing middle-class population will bode well for logistics services in the next 5-10 years.
  

Expansion Plans

We will perform both vertical and horizontal expansion in the next few years.

Vertically (product expansion), we look to expand to new business segments that leverage our current network of next-day and same-day delivery businesses. Potential segments include:

• Bulky Item Fulfilment
• Software as a Service (SaaS)
• Built-in e-commerce capabilities
• End-to-end project logistics (all-in logistics solution which includes import, warehousing, inventory management, fulfillment, distribution and delivery

Horizontally (territory expansion), our current focus is Malaysia & Indonesia. Once we feel satisfied with our revenue and market share in these two countries, we will then proceed with more aggressive expansion to Thailand, Vietnam and the Philippines.

Strategic Partnerships

Realizing that expansion especially in a foreign country is a challenging process, we have set out to seek a local partner upon our entry into the Indonesian market in 2018.

It was not until early 2022 we finally put pen to paper to form a strategic partnership with Wahana Express and Cahaya Express which allows both parties to leverage each other’s network and open up new opportunities to explore the Indonesian market.

We foresee a similar strategy being employed in other ASEAN countries that we have plans to expand.

COMPETITION

TheLorry faces competition from both next-day and same-day delivery players in this space. Our focus on bulky allows us to have better operational metrics and overall better unit economics.

We are the only player in this space that provides both bulky same-day and next-day delivery solutions. This creates cross-selling opportunities and higher stickiness among customers.

FUNDING

We are planning to raise RM2.0 - RM5.0 million mainly geared toward expansion to Indonesia. The category breakdown is as per above.

To reward our loyal customers and driver-partners, any investment above RM10,000 would unlock special benefits.

These benefits can be claimed upon completion of fundraising and we will reach out to every investor on their desired package. Terms & Conditions apply.

VISION

TheLorry aspires to be the #1 bulky supply chain player in South-East Asia with a revenue of over $100 million in 2026.

Our game plan to execute the above:

• Indonesia. 60% of group revenue should come from Indonesia in FY2023. As of 9M 2022, it is now at 34%. Q3 2022 saw an average 50% contribution from Indonesian operations.
• Unlock additional revenue streams. With a network built around Bulky next-day delivery, we are able to tap other types of complementary services including Less-than-a-truckload (LTL), Fulfilment, and Project Logistics.
• Create cutting-edge technology. We intend to continue innovating and creating strong moats in our business. This includes RFID tracking, AI Dimension Measurer and Load Optimization.

In the future, TheLorry aspires to go for an Initial Public Offering (IPO) and we feel this ECF fundraising plus the introduction of pitchIN Secondary Market will be a pre-cursor towards this eventual goal.

INVESTORS

TheLorry prides itself on having established institutional and angel investors from various industries and specializations. We have raised over RM42 million so far and this next fundraising round will seek to strengthen our operations and expand opportunities in Indonesia.

THE COMPANY

Company name: The Lorry Online Sdn Bhd

Date of Incorporation: 14th October 2014

Registration number:1113109-U (201401036967)

Date of commencement of business: 14th October 2014

History of business from the date of incorporation: Freight transport by road

Group and shareholding structure:

FOUNDERS

TheLorry was founded by two ex-colleagues with a unified vision. Both are recipients of Forbes 30 Under 30 Asia. They are:

Nadhir Ashafiq

Nadhir began his career as a The Complete Banker (TCB) Associate in CIMB and eventually got headhunted to take up a role as Finance Manager in a cargo aviation company, ABDA Group.

He eventually discovered entrepreneurship as his calling and inspired by Facebook buying Instagram for $1 billion, started a social networking app for students, expatriates and travelers.

At TheLorry, he oversees Indonesian strategy, product vision, regional marketing and human capital. He has over 10 years of experience in financing, logistics and entrepreneurship.

In 2019, he was appointed as one of the council members of National Economic Action Council (NEAC), the highest economic decision-making council in Malaysia. He also contributed to formulating key policies relating to e-commerce empowerment in Malaysia’s first-ever RM20 billion stimulus package.

Goh Chee Hau

Chee Hau started his career in ABDA Group and quickly rose up through the ranks from a Cargo Executive to a Cargo Manager handling major airlines in Europe & Middle East.

At TheLorry, he manages the commercial and operations matters for Malaysia, Singapore and Thailand to ensure consistent growth in revenue and ever-improving efficiency in operations. He also oversees Finance policies and cashflow management for the company

TEAM

TheLorry’s Regional Core Management Team (CMT) are led by capable and experienced individuals within their own fields. They are:

Ethan is the Chief Executive Officer (CEO) for TheLorry Malaysia since 2016. He is passionate about creating impactful relationships, building and scaling profitable businesses.

Trained in Economics, he has extensive experience in building impactful teams, thought leadership, project management on global supply chains, logistics management and business development. In his 15 year career, he has spearheaded business divisions to design, implement and execute commercial strategies aligning operational logistics management to extract hundreds of thousands in cost savings for a reputable global 3PL. He has also successfully built business development teams that brought Fortune 500 clients millions in additional revenue within 12 months of product rollouts.

Ethan’s undying passion for always pushing the boundaries of innovation led to the creation of TheLorry’s Bulky next-day delivery division that manages to hugely reduce costs and improve lead times for e-commerce last-mile bulky parcels.

Alzamendi is an experienced logistics professional with 10 years of expertise in land, sea and air logistics across Indonesia. He has a master’s degree in supply chain management.

He started his career in Wahana Group as a Business Development Executive to a Business Development Manager handling all of Indonesia’s operations. He has successfully made deals with e-commerce giants like Tokopedia, Bukalapak and Lazada, thus contributing to millions of additional packages per month as well as deals with corporate giants such as Nestle and Lotte.

At TheLorry, he is the CEO of TheLorry Indonesia and manages commercial and operations for Indonesia to ensure consistent growth in revenue and operational improvement. He has also succeeded in achieving positive EBITDA for Indonesia in 2022.

Waqas is an experienced technology professional with 8 years of expertise in problem solving, product development, machine learning, augmented reality, supply chain systems, and fintech domains.

He has a PhD in Human Computer Interaction and has worked on a variety of projects related to the development and design of user interfaces, user experience, software applications and automation.

With his extensive knowledge and experience, he has been able to develop highly efficient and successful solutions for TheLorry. He is constantly exploring new technologies to ensure that we stay ahead of the curve.

He is highly knowledgeable in the field of Product Development & Technology and is always looking to apply his knowledge and experience to create the best possible solutions.

Yim Fun started her career by providing corporate secretarial, accounting and taxation services to clients under her care. She is a management accountant with 20 years of experience and has functioned as a finance business partner in manufacturing, trading and educational industries before joining TheLorry in 2016.

At TheLorry, she manages the accounting, cashflow and financial matters for Malaysia, Indonesia, Singapore and Thailand to ensure the best and consistent practices across the group. She understands the operations and business well to provide valuable inputs and problem solve when needed. She has worked alongside the management from Series AA to Series B fundraising.

PRESS

Tech in Asia:
https://www.techinasia.com/malaysias-thelorry-nets-59m-logistics-network-solution

The Edge:
https://www.theedgemarkets.com/article/trick-think-your-feet

SAYS
https://says.com/my/lifestyle/nadhir-ashafiq-forbes-30-under-30-asia

Vulcan Post
https://vulcanpost.com/618990/update-thelorry-malaysia-logistics-cargo-service/

Maxis x Gen.T
https://www.youtube.com/watch?v=kMrINutI9aE&t=3s

Uniqlo AIRism
https://www.youtube.com/watch?v=GIbMVvon_-s&t=40s

dingding
https://www.youtube.com/watch?v=NugdiVaWOCc

DISCLAIMERS

“No shares will be allotted or issued based on this document after six months from the closing of the offer period.”

“This issue, offer or invitation for the offering is a proposal not requiring authorization of the Securities Commission under section 212(8) of the CMSA 2007.”

“This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assume responsibility for any information including any statement, opinion or report disclosed in relation to this fundraising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.”

1. pitchIN and its officers and staff may also be investing in this campaign
2. Under ECF Guidelines, valuation is determined and set by the Issuer. Investors are advised to carefully peruse all investment offers and documents before making investment decisions.