In August this year, Lalamove rival and Hong Kong startup GOGOVAN announced its merger with Chinese peer 58 Suyun to create a $1 billion logistics firm. The merged entity now aims to raise up to $200 million by selling shares to strategic investors to help fund expansion.
Founded in 2013, Lalamove matches drivers with customers via its website and mobile app to fulfil same day deliveries. It claims to have over two million drivers who cater to 15 million users, largely small and medium enterprises, through its online platform. The firm claims to offer logistics and delivery services in 100 cities across Asia.
The latest round brings Lalamove’s total funding so far to over $160 million. It had last raised a $30 million Series B round in January this year.
Lalamove intends to use the proceeds to further its market expansion, talent development, and to build new product features, including a new API integration service that would help SMEs leverage its on-demand delivery technology through their own business services.
ShunWei Capital Partner Cheng Tian said Lalamove is an important investment for the company in the mobile logistics sector, considering its potential to help lead the way in modernizing logistics by bringing the industry online.
“We foresee strong growth in last-mile delivery and this has been reflected in Lalamove’s growth and performance,” Tian said. “Their resilience and continued efforts to innovate have allowed them to lead in the last mile delivery business.”
MindWorks Ventures partner David Chang said the new round of financing will further widen Lalamove’s dominance as the regional leader in the on-demand logistics space.
Xiang He Capital invests in early and growth stage investments in China, mostly engaged in AI, telecommunications, media, technology and disruption of traditional industries such as online education, logistics, fin-tech and online medical systems, enterprise services, B2B and internet.
MindWorks Ventures is based in Hong Kong and invests into high-growth technology startups in the post-seed stage with a focus in the Southeast Asia and Greater China regions.