Press Release

NX Group invests in Singapore AI technology startup SWAT MOBILITY

April 17, 2024

-- Seeks to accelerate logistics DX by optimizing transport routes and analyzing traffic data --

NIPPON EXPRESS HOLDINGS, INC. (President: Satoshi Horikiri) on April 2 acquired a stake in SWAT MOBILITY (hereinafter "SWAT"), an AI technology start-up company headquartered in Singapore, as an investment by the NX Global Innovation Investment Limited Partnership (hereinafter, "NX Global Innovation Fund"). The NX Group hopes through this investment to further accelerate its digital transformation (DX) strategy and help resolve social issues on a global scale.

Overview of SWAT
SWAT is a company established in Singapore in 2015 that provides services in eight countries (Singapore, Japan, the Philippines, Thailand, Malaysia, Vietnam, Indonesia, and Australia) using dynamic routing algorithms (*1) that instantly derive optimal routes for sporadic travel demand from multiple points. In Japan, SWAT is developing and providing logistics/distribution optimization systems, on-demand transport operation systems, and bus route traffic analysis systems as well as taking new approaches tailored to the local market environment from the perspective of Mobility as a Service (MaaS).

Background and objectives of the Investment
The logistics industry is facing global social challenges such as driver shortages, rising fuel costs, and required cuts in CO2 emissions to combat climate change. Companies are expected to take concrete steps to address these challenges and help achieve sustainable societies. Japan in particular is likely to see a labor shortage due to stricter work regulations for truck drivers that go into effect in 2024, making improved logistics efficiency an urgent issue.
The NX Group has been pursuing digital transformation (DX) as a tool for resolving these issues and has been actively exploring the use of external resources, including co-creation (*2) with startup companies in Japan and overseas, to attain greater logistics efficiency.

By investing in SWAT, which is strong in cutting-edge mobility solutions in Singapore and other areas, the NX Group seeks to accelerate its DX and resolve global-scale social issues in the logistics industry.

Initiatives

• Verification of digitalized vehicle dispatch operations
  SWAT's dynamic routing algorithm technology and advanced development capabilities will be utilized at NX Group locations and projects in Japan and overseas to verify the digitalization and global standardization of vehicle dispatch operations.
• Development of new services via the strategic use of transport performance data
  Utilizing the transport performance data accumulated through verification processes, the NX Group will analyze the parameters required for vehicle dispatch operations and calculate pickup and delivery costs as well as CO2 emissions. The Group will work to develop new services by making strategic use of the data.

The NX Group will continue leveraging its domestic and international networks to co-create with promising startups.

Profile of investee

Company name	SWAT Mobility Pte., Ltd.
Location	47 Scotts Road #03-01/02 Goldbell Towers Singapore 228233
Year established	2015
Representative	Jarrold Ong
Capital	SGD 28,742,892.77 (as of February 2024)
Number of employees	76 (as of February 2024)
Description of business	Development of dynamic routing algorithms Development and introduction of logistics/distribution optimization systems, on-demand transport operation systems, and bus route traffic analysis systems
Website	https://www.swatmobility.com/

(*1) Dynamic routing algorithm: Technology designed to create optimal routes based on traffic information and given data

(*2) Co-creation: Collaboration between NX Group companies and the NX Global Innovation Fund to invest in startup companies that add value to customers and on-site operations, with the NX Group and startup companies working together to achieve business growth