Beijing-based venture capital firm Xianghe Capital has led a $30-million Series B financing round in Hong Kong headquartered on-demand delivery company Lalamove, with participation from Blackhole Capital, MindWorks Ventures, Crystal Stream and Thailand’s Asia Plus Group Holdings.
This investment round exceeds its previous three rounds of financing, bringing the startup’s total funding to a combined $60 million.
Launched in 2013 as EasyVan, the company said it will use the latest round of financing to continue its aggressive expansion in Asia, where it plans to launch in 60 cities by this year-end. Currently, it operates in about 50 cities in China and five cities across Southeast Asia including Singapore, Manila and Bangkok.
The company follows a similar model as that of Uber. It signs up van, truck and even motorcycle drivers, who deliver and collect goods for individuals and corporates, and all of these are undertaken via its app. Lalamove then retains a percentage of the amount clients pay to use for delivery via trucks, vans and motorbikes. It claims to have over over a million drivers signed up on its platform.
Lalamove, whose primary business comes from China, competes with Gogovan and Ninja Van and several smaller players.
Last year, Singapore-headquartered Ninja Van too had announced a $30 million series B round led by the Abraaj Group, along with B Capital Group and YJ Capital (Yahoo Japan), and it also saw participation from its existing investor Monk’s Hill Ventures
“Logistics is a big market – a $1.7 trillion market in China – and it accounts for up to 27 percent of GDP for some countries in Southeast Asia; it is underpenetrated by mobile internet,” said Lalamove’s Founder and CEO Shing Chow. “The evolution of the logistics industry has not been as rapid as some other markets like communication, but we believe we are at a tipping point where transformation will now happen very rapidly. We will see some amazing companies built this sector.”
In 2016, Lalamove partnered with LINE, one of the world’s leading mobile platforms, to develop the LINE MAN app, which gives users the ability to quickly purchase and receive documents, packages, food and grocery items in Thailand. The company previously developed enterprise solutions for Google and IKEA as well.
“In our two years of operations in Bangkok, Lalamove has become the city’s leading on-demand delivery app and we have witnessed significant growth both from users and drivers. This funding will not only enable us to expand to other cities, but also to offer additional services to meet the needs of our users and to further develop and upgrade the app with new features,” added Lalamove Thailand’s managing director Chanon Klahan.