SEA-based lalamove to raise $30m series B round in 2016

Blake Larson and Santit Jirawongkraisorn

Southeast Asia’s on-demand delivery app lalamove expects to secure $30 million in Series B funding round in the first half of 2016, to improve service quality and to further its expansion plans.

“Around 60 per cent of the proceeds from Series B funding round will go towards our expansion in new cities, and the other 40 per cent will be used to strengthen our brand and improve service quality in existing cities,” Blake Larson, Head of International at lalamove, told DealStreetAsia.

Starting the business in Hong Kong in 2013, lalamove has grown to be Asia’s leader in ‘on demand delivery’ platform for iOS and Android users. Currently, it operates in Hong Kong, Singapore, Bangkok, Taipei and 11 cities in mainland China.

The next destinations it is considering are Hanoi, Manila, Ho Chi Minh, Kuala Lumpur and Jakarta.

In a span of two years, lalamove’s number of registered users has surged to 455,000 and the app has been downloaded more than half a million times in the past year.

It has over 30,000 drivers in the region, achieving 2 million deliveries with a total transaction value of around $20 million.

Larson said, Bangkok has been the most rapidly-growing market so far.

Implementing its operation in Bangkok a year ago, lalamove has achieved 27,000 downloads last month and already has a few thousand registered drivers.

“In Thailand we are investing in a more streamlined local service to drive market through the network effect of delivery volume. Around 50% of new business is from referrals. This cuts our customer acquisition costs, allowing us to invest in quality service and, of course, technology which is the backbone of our business,” he said.

Bangkok has an e-commerce capital worth over $100 million with 15-20 per cent growth per annum over the past several years, and that has made lalamove see a massive growth in one year, co-founder and managing director Santit Jirawongkraisorn said.

“We have seen 20 per cent monthly growth in the last three months and the transaction value has risen to 19 million baht in November,” he said. “We expect to see 5-10 times growth in both download figures and transaction value next year.”

Currently, around 60-70 per cent of its revenue in Thailand comes from B2C segment and the rest from B2B.

The company is also looking at serving demand coming from SMEs and bigger corporates, the co-founder said.

“Lalamove has cooperated with IKEA in Singapore to improve its on-demand delivery. We are also working on creating such partnership with corporates in Thailand, which we expect to complete the deal and announce next year,” he added.

Also Read: LalaMove raises $10m in latest series A round