Kevin Zhang's Journey from Zero to $100 Million in Southeast Asia's Logistics Industry

"Your background or where you come from are not excuses to limit you. The only limitation is yourself or your mindset," says Kevin Zhang, reflecting on his remarkable journey from a struggling student to the founder and CEO of Inteluck, Southeast Asia's leading data-driven logistics platform.

In 2014, 21-year-old Kevin Zhang found himself navigating the rugged terrain of the Philippines in an old truck. He crossed rivers by foot to test their depth and understand the challenges of the local logistics industry firsthand. This adventurous spirit and hands-on approach became the cornerstone of Inteluck, a company that has since transformed logistics in Southeast Asia. "At one point, I had to cross a river by foot to test its depth before driving through it," Kevin recounts. "That experience taught me the importance of respecting nature and the fragility of life."

Growing up in a family of educators, Kevin was taught the values of honesty, kindness, diligence, and responsibility. These principles became the bedrock of his character, guiding him through every challenge he faced.

Kevin wasn't the top student in his class; he often found himself at the bottom, struggling to keep up. Unlike many of his peers, he didn't secure a spot in a top university. But instead of giving up, he used this as motivation to work harder and prove himself. During his college years, Kevin's entrepreneurial spirit began to take shape. He developed two mobile applications—a book recommendation app and a Mandarin learning app inspired by his father's role as a Mandarin certification judge. The success of the apps, which unexpectedly garnered over a million downloads combined, was a turning point. "This early experience taught me how to lead, divide tasks, set timelines, encourage people, and manage a team," Kevin recalls. "It was my first taste of turning an idea into reality."

After college, Kevin interned at a relative's business. There, he saw the stark contrast between his frugal student life and the material affluence of business professionals. This made him question the true purpose of life. "I realized that life's purpose is finding inner peace and satisfaction," Kevin explains. "It's not about the material things; it's about doing something meaningful and creating value for others." Kevin also moved to the Philippines because of this internship.

With a background in information systems, Kevin founded Inteluck initially to provide IoT (Internet of Things) services via SaaS (Software as a Service) to logistics companies when he arrived in the Philippines. Since IoT devices were predominantly produced in China, he aimed to sell them in the Philippines. He started addressing critical issues in the trucking industry, such as the lack of infrastructure to track truck locations, real-time shipment information, driver details, and frequent cases of stolen goods. Despite having most of the large third-party logistics (3PL) as clients, Kevin realized the addressable market was too small. The large 3PLs comprised only 10% of the market, while 90% were small truck operators with fewer than ten trucks. This forced mid to large-size customers to rely on fragmented logistics providers, requiring them to manually manage hundreds of truckers without a streamlined system, making signing contracts, managing logistics, and handling payments challenging.

"One of our customers suggested that we provide trucking services directly," Kevin recalls. Recognizing the larger logistics market potential, Kevin pivoted from IoT solutions to directly providing logistics services. He then adopted the marketplace model, similar to Uber for logistics, which was prevalent in China and Southeast Asia. However, he quickly recognized that the model was not a sustainable business model in the trucking industry. "The marketplace model wasn't benefiting the truckers. It was clearly not the right fit for our needs," Kevin explains.

Realizing the limitations of the marketplace model, Kevin shifted to the brokerage model, which could benefit the customers and increase efficiency and truckers' income by leveraging data analytics. This model allowed Inteluck to enhance operational efficiency and deliver more value to both customers and truckers. "We learned that by focusing on data and analytics, we could significantly improve the logistics process," Kevin says.

A specific example demonstrating Inteluck's value can be seen in 2020 when Inteluck began working with a paper manufacturing company that initially used 13 logistics providers. During the peak season, the major providers couldn't meet the increased demand, causing stock to be stuck in the warehouse. Inteluck worked tirelessly for two weeks, providing nearly ten times the usual capacity. This led the customer to make Inteluck their primary provider, saving on management expenses and improving operational efficiency with competitive pricing and reliable capacity.

One of the most challenging times for Kevin was during Inteluck's early days, particularly when pivoting from SaaS to a marketplace model. Without proven metrics, Kevin struggled to gain investor confidence. "We were close to bankruptcy. I remember waiting for hours in venture capital firm lobbies, hoping for a chance to pitch my vision," he recalls. Despite the setbacks, his persistence paid off when he secured a crucial bridge round from an investor who believed in him, although the investor preferred a different business model. Kevin stood firm on solving the logistics problem in the Philippines. On his way to the airport, he received a text from the investor asking for his bank account details. "I guess he saw something in me," Kevin recalls. This bridge loan enabled Inteluck to establish the metrics needed for the new model, leading to the next round of fundraising from institutional investors.

To date, Inteluck primarily operates in the Philippines and Thailand, providing logistics services with access to a substantial fleet of over 14,000 delivery trucks. The company serves over 300 enterprises across various industries, including FMCG, food and beverages, telecommunications and electronics, industrial companies, manufacturing, e-commerce, etc. Inteluck has raised over US$56 million, with a valuation exceeding US$100 million. Notable investors include Navegar, East Ventures, Creo Capital, Headline Ventures, MindWorks Capital, and Lalamove. At Inteluck, Kevin prioritizes customer satisfaction and operational efficiency, continually innovating to meet customer needs and solve their problems. Financial discipline is a cornerstone of Inteluck's operations, emphasizing the responsible management of shareholder funds. "The company's money is a trust from our shareholders," Kevin states. "We must manage it responsibly."

Building a company in Southeast Asia, Kevin focuses on creating a robust local team and fostering a positive work environment. "The core of our success is our team," Kevin emphasizes. "We must respect and nurture our local talent to build a solid and efficient organization." Living in the Philippines for over ten years taught Kevin the importance of cultural adaptability and local engagement. "Integrating into the local culture is crucial for success," he says.

For Inteluck's expansion strategy, Kevin set up a tech center in China to develop a comprehensive system for standardizing operations. "We set up a tech center in China and developed a comprehensive system to standardize our operations. This system allowed us to scale efficiently and maintain high standards across different regions," Kevin explains. The decision to expand into Malaysia and Vietnam followed a similar logic, focusing on markets with strong economic ties and high growth potential.

One of Kevin's most notable qualities is his adaptability and willingness to learn. He did not speak English fluently when he first arrived in the Philippines. "Passion and pressure pushed me to learn English quickly," Kevin shares. "I was passionate about communicating and understanding others, and the pressure to use English in everyday situations helped me improve rapidly."

Beyond his professional achievements, Kevin is an avid Muay Thai and MMA enthusiast. Competing in these sports embodies the resilience and discipline he applies to his business. "Muay Thai and MMA are vital outlets for maintaining balance and managing stress," Kevin explains. Drawn to Chinese Kung Fu from a young age, he took up Muay Thai and MMA rigorously in 2019, finding that training acts as a form of meditation, enhancing his focus and continual improvement. "These experiences reinforce humility and self-improvement," he reflects. "In business, as in martial arts, success is achieved through consistent effort and facing challenges head-on."

Looking ahead, Kevin remains focused on Inteluck's growth and sustainability. "We aim to achieve profitability in our current markets before expanding to new ones," he states. "Our goal is to create a sustainable, profitable, and professional logistics company that continues to provide value to our customers and stakeholders."