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Flash Group CEO Komsan Lee
Flash Categorical, owned by Flash Group, is an all-in-one logistics service supplier serving e-commerce gamers.
A unicorn firm, Flash Categorical has to date 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 prior to now two-three years, how the present international 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 progress perspective? How did it tide over COVID-19 and the financial slowdown?
In the course of the first 12 months 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 hundreds of thousands of parcels. We additionally began searching for alternatives to broaden our enterprise into Southeast Asia.
Flash Group supplies providers in Thailand, Malaysia, the Philippines, Indonesia, Laos, and Vietnam. We’re getting ready to cowl your entire 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 Categorical 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 at all times 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 international financial slowdown have an effect on enterprise, and what steps has it taken to mitigate any destructive impacts? Has Flash seen any modifications in buyer behaviour or demand, and the way has it responded?
The general international financial state of affairs signifies that the worldwide financial system will expertise a slowdown or slower progress than the earlier 12 months attributable to varied components.
Nonetheless, the general financial outlook for Thailand this 12 months is anticipated to indicate barely higher progress than the earlier 12 months’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 comply with 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 could happen throughout sure intervals. General, the market nonetheless demonstrates progress. The corporate carefully displays Thailand’s international financial state of affairs and different related components. We now 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 12 months after beforehand dealing with losses.
Moreover, shopper behaviour in selecting our providers has remained constant. This may be seen from the rising variety of prospects, with a median day by day peak parcel quantity exceeding 2 million items.
This means that the methods beforehand employed by Flash Group, equivalent to 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 influence on Flash’s monetary technique. We usually carry out materiality assessments, together with all precise and potential components impacting our funds or operation. We now have additionally established a monitoring course of to comply with up and assessment administration approaches associated to these materials matters.
Lastly, we arrange metrics to judge our efficiency by means of company and division OKRs to make sure we are able to obtain our enterprise goal and generate long-term worth for our sustainability.
Are you able to communicate of current 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 at all times difficult, and every spherical presents challenges.
Relating to the general investor perspective, we consider everyone seems to be searching for alternatives and tends to decide on corporations with a future potential to generate earnings and revenue. Due to this fact, the state of the financial system is probably not the first indicator of its influence on fundraising.
Are you able to focus on any cost-cutting measures Flash has carried out and the way these measures have impacted your corporation operations? Did you lay off staff to remain afloat available in the market?
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 serious expense for us. Due to this fact, the corporate has integrated expertise and different options; for instance, growing a expertise software that analyses probably 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 performed experiments with electrical automobiles for transportation, equivalent to electrical bikes and three-wheeled automobiles. These initiatives intention to boost value administration and discover environmentally pleasant choices.
Have you ever adjusted your progress projections or different key efficiency indicators in mild of the present financial local weather?
Flash continues to pursue our important goal of increasing enterprise protection all through Southeast Asia and connecting logistics networks, with Thailand because the centre. We intention to create an ecosystem and infrastructure that positions us because the logistics hub in SEA.
In 2023, Flash is progressing in line with the unique plan and is getting ready to open operations in a foreign country. We’re learning the market in Singapore and Vietnam and our present growth in Laos, the Philippines, and Malaysia. Moreover, the European market can also be thought-about a big 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 turn out to be an integral a part of folks’s lives and the driving drive behind the financial system. Most of society nonetheless must make purchases, and transportation companies have turn out to be essential to folks’s lives. In the course of the COVID-19 pandemic, it acted as a drive that modified folks’s behaviour from offline to on-line.
Nonetheless, we prioritise materiality by continually reviewing and reassessing it. Our materiality encompasses trending points or exterior components that will influence 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 give attention to growing and bettering our providers to satisfy the wants of varied goal buyer teams, together with on-line companies and particular person prospects.
We emphasise a coverage of providing a various vary of bundled services, catering to each company shoppers and on-line retailers. Moreover, we search enterprise partnerships to broaden our attain and protection throughout completely different industries, together with courier and logistics providers. Flash continually innovates and develops new providers and presents to satisfy the evolving calls for of our buyer base.
How have you ever maintained a powerful firm tradition and motivated your group throughout these difficult occasions?
The cultivation of 5 core values is important for Flash Group. Buyer-first means prioritising buyer wants, whereas Outcome Oriented entails actively contributing to the enterprise and striving for the perfect outcomes. Teamwork emphasises collaborative efforts and steady studying throughout the group. Integrity entails performing truthfully and doing what’s morally proper. Dedication represents a passionate dedication to attaining each particular person and group targets.
These beliefs and attitudes information Flash Group, shaping how folks work together with prospects and colleagues. They supply a complete understanding of the corporate and foster self-awareness amongst people. Furthermore, these values kind a significant basis for the corporate’s progress and skill to adapt to altering circumstances.
Can we see an finish to the raise-cash-burn-cash progress mannequin and the emergence of the ‘make earnings, maintain & develop’ mannequin?
Flash Group believes now we have constantly operated our enterprise with a profit-driven method for sustainable progress, 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 turn out to be extra cautious, inflicting startups to reassess methods that closely depend on fundraising. Due to this fact, what is important 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 prospects. Then we are able to have the chance to navigate by means of 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 individuals who are fascinated with initiating a enterprise enterprise, it is strongly recommended that you simply interact in real and complete analysis. Establish the distinctive qualities that differentiate you from rivals in that trade and decide what worth you’ll be able to provide your goal buyer base. When you perceive this, place confidence in your self and actively pursue your targets. Moreover, timing can also be a important issue that contributes to attaining success.
How is the mindset and cultural shift taking place internally since we’re in a high-interest price atmosphere and funding isn’t going to be as simple as earlier than?
Flash has inner administration throughout the organisation divided into three eras: the period of empowerment, the period of laws, and the period of cultivating organisational tradition. Within the first period, which we name the period of empowerment, the main target was on outcomes as a result of it was a place to begin the place we did no matter it took to fulfill prospects with our providers and make them return to make use of our providers once more.
Additionally Learn: Flash Categorical secures US$200M Sequence D to broaden its e-commerce logistics service in SEA
The subsequent period is named the period of laws as a result of after doing enterprise for 2 years, we gained buyer acceptance, leading to a big enhance in day by day shipments. With extra staff, we needed to adapt by implementing laws, having auditors to look at accounts and strict monetary controls. The benefit of this period was that all the things was accomplished in line with laws. The corporate did what it ought to do, and we had staff who understood the organisation, labored as a group, and have been extra skilled.
We’re within the third period, which is the period of cultivating organisational tradition. We now have 5 core values that we use in our work. We try to instil these values in our staff so everybody works collectively to realize the organisation’s targets. Thus, we’re assured that our folks will present this robust and preventing spirit in opposition to all of the difficulties and obtain our objective. This can construct buyers’ confidence in our enterprise success, even throughout this difficult time.
We’re targeted on the mindset of people who can ship good work beneath the corporate’s deliberate path and replicate the enterprise efficiency, which is able to construct long-term investor confidence.
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