By Sharon Lewis and Reethu Ravi This article is the first of a four-part Tech’s Year in Review series reviewing developments across industries in 2020. This first installation discusses some industries spotlighted by the COVID-19 pandemic, namely edtech, logistics and supply chains, fintech, [...]
(Hong Kong, 13 January 2021) – Caelus Asset Management Limited (“Caelus”) announced that it had participated in the US$10 million Series Pre-A financing of Zeek, a Southeast Asia focus logistics technology startup established by Kin Shun Information Technology Limited. The funding is to support Zeek’s further expansion in Southeast Asia markets, refinement of logistics management technology, and enhancement in data analytics application. Other regional strategic investors and investment funds that joined in this round include property developer Chinachem Group, CASH Group (SEHK: 1049), Innovation and Technology Venture Fund of the Hong Kong Government, Hong Kong Science & Technology Parks Ventures, Radiant Tech Venture Fund LP, and SQ Capital Ventures.
Expanding Investment Profile to the Logistics Sector
In light of market adversity and switching investor appetite brought by the COVID-19 pandemic, Caelus agrees that logistics is one of the must-watch sectors for thematic investment funds that hold a diversified portfolio.
“The pandemic disruption alerts investment funds to put more focus on sectors that can secure stable growth of returns in the long-term,” said Anthony Yeung, CEO at Caelus. “Consumer behaviours have been drastically changed during 2020, almost in a transformative way. The e-commence market emerges as the times require and so do the logistics industry, particularly in Southeast Asia. It is obvious to see the demand for logistics in our everyday life, but compared with the ultra-competitive B2C segment where well-established players like Foodpanda, Deliveroo and Grab are fighting for a slim profit margin given the increasing customer expectations, it is the untapped B2B last-mile logistics market that we are eyeing on.”
Investing in Pioneers with Innovative Business Model and Technology
Zeek offers various smart delivery solutions to serve its mixed clientele of global fast-food chain, leading supermarkets, department stores, convenience store chains, and even online platforms. Carl Chan, the co-founder of Caelus, explained this is one of the competitive edges for Zeek to succeed in the Southeast Asia logistics market. “Being a data-driven smart logistics technology company that bridges the merchants and the buyers, Zeek devotes its attention to improving its online order management, delivery capacities management, big data analytics and O2O operations. And ultimately, the technology that shortens the delivery time, increases the efficiency and minimizes the overall operating cost will be its greatest asset in securing its profit in the long run,” said Carl. “In other respects, Caelus as an asset manager with entrepreneurial thinking, is going to support Zeek with resources other than capital investment. For example, linking up Zeek with strategic partners in our extensive network for business synergies.”
“Of course, the current dashboard matters. Zeek has shown astonishing growth in 2020: its Hong Kong business has already recorded profit while gross profits and delivery orders have grown in other market regions like Singapore, Thailand, Vietnam and Malaysia,” Carl continued. “The future is promising as Zeek is enhancing its core competence in technologies and expanding to new markets such as Taiwan, the Philippines and Indonesia this year.”
About Caelus Asset Management Limited
Established and headquartered in Hong Kong, Caelus Asset Management Limited (aka “Caelus”) is an independent asset management firm committed to serving institutional investors, family offices and affluent individuals across Asia. As a boutique asset manager, we focus on off-market investment placements that deliver active value appreciation and sustainable absolute return. We maintain a global investment portfolio that focuses on Medical Technology, Smart City, Real Estate and Infrastructure, and Environmental Technology.
Licensed by the Securities and Futures Commission of Hong Kong to conduct Type 4 (Advising on Securities) and Type 9 (Asset Management) regulated activities, we offer various Private Equity Funds, External Asset Management, and Discretionary Portfolio Management services— designed to grow and safeguard our clients’ wealth.
The investment product mentioned in this column is only intended for professional investors (as defined in section 1 of Part 1 of Schedule 1 to the Securities & Futures Ordinance).
The information is provided for general information purposes only and is not an offer or solicitation for the purchase or sale of any financial instrument or service. Investments involve risks and your investment may suffer significant losses. Investors are advised to seek independent professional advice before making any investment decisions.
This information is issued by Caelus Asset Management Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.