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Flash Group CEO Komsan Lee
Flash Specific, owned by Flash Group, is an all-in-one logistics service supplier serving e-commerce gamers.
A unicorn firm, Flash Specific has thus far attracted over US$780 million throughout a number of funding rounds from buyers, together with Buer Capital, SCB 10X, eWTP, PTT Public Firm Restricted, OR Retail Restricted, Durbell, and Krungsri Finnovate.
On this interview, Flash Group CEO Komsan Saelee shares how the group grew previously two-three years, how the present world financial slowdown is affecting its enterprise, the market alternatives that emerged because of the financial downturn, and the corporate’s working tradition.
Edited excerpts
How has been the previous two to a few years for Flash Group from a enterprise development perspective? How did it tide over COVID-19 and the financial slowdown?
Throughout the first yr of the pandemic, it was a beneficial interval for the logistics trade, and never solely Flash Group and different gamers gained market share. Flash was in a position to deal with supply volumes reaching tens of millions of parcels. We additionally began in search of alternatives to broaden our enterprise into Southeast Asia.
Flash Group offers companies in Thailand, Malaysia, the Philippines, Indonesia, Laos, and Vietnam. We’re getting ready to cowl your complete Southeast Asia area by 2024.
After the extreme interval of the pandemic subsided, the logistics market additionally started to say no. The expansion of e-commerce, though current, was not as strong as anticipated by all events. The excessive administration value and the market state of affairs have slowed down the enterprise.
Additionally Learn: Flash Specific provides US$150M extra to its kitty, turns into Thailand’s first unicorn
Nonetheless, Flash has been in a position to adapt by adjusting our enterprise plans promptly. We all the time have Plan B and Plan C for total enterprise administration. We expedite value administration and insurance policies to make sure the organisation strikes ahead steadily.
How does the present world financial slowdown have an effect on enterprise, and what steps has it taken to mitigate any unfavourable impacts? Has Flash observed any modifications in buyer behaviour or demand, and the way has it responded?
The general world financial state of affairs signifies that the worldwide economic system will expertise a slowdown or slower development than the earlier yr as a consequence of varied components.
Nonetheless, the general financial outlook for Thailand this yr is predicted to point out barely higher development than the earlier yr’s. That is partly because of the restoration in tourism and elevated home and international investments which have returned.
In the meantime, Flash Group continues to observe our authentic growth plan in Southeast Asia (SEA). Because of this the worldwide financial slowdown has not considerably impacted the enterprise on this trade.
The e-commerce market continues to broaden, though fluctuations might happen throughout sure durations. General, the market nonetheless demonstrates development. The corporate intently displays Thailand’s world financial state of affairs and different related components. Now we have developed contingency plans for each the medium and long run to make sure preparedness for dealing with the state of affairs and aligning the corporate’s insurance policies accordingly.
Amid the present financial circumstances, shopper buying energy stays excessive, as evident from the continued enhance in on-line platforms, that are experiencing profitability this yr after beforehand dealing with losses.
Moreover, shopper behaviour in selecting our companies has remained constant. This may be seen from the rising variety of clients, with a mean day by day peak parcel quantity exceeding 2 million items.
This means that the methods beforehand employed by Flash Group, resembling pricing, accessibility to distant areas, and an efficient IT system, proceed to achieve success. These components are thought-about strengths of Flash.
How has your monetary technique modified in mild of the present market circumstances, and what measures have you ever taken to make sure long-term sustainability?
The present market state of affairs has little impression on Flash’s monetary technique. We commonly carry out materiality assessments, together with all precise and potential components impacting our funds or operation. Now we have additionally established a monitoring course of to observe up and overview administration approaches associated to these materials subjects.
Lastly, we arrange metrics to judge our efficiency by company and division OKRs to make sure we will obtain our enterprise objective and generate long-term worth for our sustainability.
Are you able to communicate of latest fundraising efforts and the way the present financial local weather impacted these efforts?
There hasn’t been any official information relating to the most recent fundraising spherical. Nonetheless, each fundraising spherical is all the time difficult, and every spherical presents challenges.
Relating to the general investor perspective, we imagine everyone seems to be in search of alternatives and tends to decide on corporations with a future potential to generate earnings and revenue. Due to this fact, the state of the economic system is probably not the first indicator of its impression on fundraising.
Are you able to focus on any cost-cutting measures Flash has carried out and the way these measures have impacted your enterprise operations? Did you lay off staff to remain afloat out there?
Flash has carried out measures to repeatedly enhance insurance policies and plans throughout the organisation to handle prices and cut back pointless bills. Significantly, power prices are thought-about a significant expense for us. Due to this fact, the corporate has included expertise and different options; for instance, creating a expertise utility that analyses essentially the most environment friendly supply routes to make sure the quickest supply of parcels to their locations, enabling our supply personnel to utilise it.
Moreover, the corporate has carried out experiments with electrical automobiles for transportation, resembling electrical bikes and three-wheeled automobiles. These initiatives goal to reinforce value administration and discover environmentally pleasant choices.
Have you ever adjusted your development projections or different key efficiency indicators in mild of the present financial local weather?
Flash continues to pursue our most important goal of increasing enterprise protection all through Southeast Asia and connecting logistics networks, with Thailand because the centre. We goal to create an ecosystem and infrastructure that positions us because the logistics hub in SEA.
In 2023, Flash is progressing in accordance with the unique plan and is getting ready to open operations overseas. We’re finding out the market in Singapore and Vietnam and our current growth in Laos, the Philippines, and Malaysia. Moreover, the European market can be thought-about a major goal for the corporate’s enterprise growth.
Are you able to communicate of any market alternatives which have emerged because of the financial downturn and the way your organization is capitalising on these alternatives?
We’re lucky that regardless of the financial downturn, Flash Group’s enterprise has been minimally affected. The transportation enterprise has develop into an integral a part of folks’s lives and the driving power behind the financial system. Most of society nonetheless must make purchases, and transportation companies have develop into essential to folks’s lives. Throughout the COVID-19 pandemic, it acted as a power that modified folks’s behaviour from offline to on-line.
Nonetheless, we prioritise materiality by continuously reviewing and reassessing it. Our materiality encompasses trending points or exterior components that will impression our enterprise. This permits the corporate to sense and reply shortly, leading to company resilience in turbulent conditions and financial downturns.
Are you able to focus on your plans for diversifying your income streams or increasing into new markets in mild of the present financial local weather?
Flash continues to hunt enterprise alternatives to extend market share in Thailand and internationally. We deal with creating and bettering our companies to fulfill the wants of assorted goal buyer teams, together with on-line companies and particular person clients.
We emphasise a coverage of providing a various vary of bundled services, catering to each company purchasers and on-line retailers. Moreover, we search enterprise partnerships to broaden our attain and protection throughout completely different industries, together with courier and logistics companies. Flash continuously innovates and develops new companies and gives to fulfill the evolving calls for of our buyer base.
How have you ever maintained a powerful firm tradition and motivated your crew throughout these difficult instances?
The cultivation of 5 core values is crucial for Flash Group. Buyer-first means prioritising buyer wants, whereas Outcome Oriented includes actively contributing to the enterprise and striving for the very best outcomes. Teamwork emphasises collaborative efforts and steady studying throughout the crew. Integrity entails appearing actually and doing what’s morally proper. Dedication represents a passionate dedication to reaching each particular person and crew targets.
These beliefs and attitudes information Flash Group, shaping how folks work together with clients and colleagues. They supply a complete understanding of the corporate and foster self-awareness amongst people. Furthermore, these values type a significant basis for the corporate’s development and talent to adapt to altering circumstances.
Will we see an finish to the raise-cash-burn-cash development mannequin and the emergence of the ‘make earnings, maintain & develop’ mannequin?
Flash Group believes we’ve constantly operated our enterprise with a profit-driven method for sustainable development, particularly when the startup trade has confronted new realities.
With the Federal Reserve’s rate of interest hikes and the decline of Silicon Valley Financial institution, buyers have develop into extra cautious, inflicting startups to reassess methods that closely depend on fundraising. Due to this fact, what is crucial now for startups is to construct investor confidence by having a marketing strategy that goes past relying solely on fundraising but in addition generates income from clients. Then we will have the chance to navigate by the present circumstances efficiently.
What challenges does a late-stage startup face in comparison with an early-growth-stage startup? What learnings can early or growth-stage corporations make from late-stage corporations?
For many who are occupied with initiating a enterprise enterprise, it is suggested that you simply interact in real and complete analysis. Determine the distinctive qualities that differentiate you from opponents in that trade and decide what worth you’ll be able to supply your goal buyer base. When you perceive this, place confidence in your self and actively pursue your targets. Moreover, timing can be a crucial issue that contributes to reaching success.
How is the mindset and cultural shift taking place internally since we’re in a high-interest fee atmosphere and funding isn’t going to be as straightforward as earlier than?
Flash has inside administration throughout the organisation divided into three eras: the period of empowerment, the period of rules, and the period of cultivating organisational tradition. Within the first period, which we name the period of empowerment, the main focus was on outcomes as a result of it was a place to begin the place we did no matter it took to fulfill clients with our companies and make them return to make use of our companies once more.
Additionally Learn: Flash Specific secures US$200M Sequence D to broaden its e-commerce logistics service in SEA
The following period is known as the period of rules as a result of after doing enterprise for 2 years, we gained buyer acceptance, leading to a major enhance in day by day shipments. With extra staff, we needed to adapt by implementing rules, having auditors to look at accounts and strict monetary controls. The benefit of this period was that every little thing was completed in accordance with rules. The corporate did what it ought to do, and we had staff who understood the organisation, labored as a crew, and had been extra skilled.
We’re within the third period, which is the period of cultivating organisational tradition. Now we have 5 core values that we use in our work. We try to instil these values in our staff so everybody works collectively to attain the organisation’s targets. Thus, we’re assured that our folks will present this sturdy and combating spirit towards all of the difficulties and obtain our objective. It will construct buyers’ confidence in our enterprise success, even throughout this difficult time.
We’re centered on the mindset of people who can ship good work beneath the corporate’s deliberate route and replicate the enterprise efficiency, which is able to construct long-term investor confidence.
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