Venture capital firms N5 Capital, V Star Capital and Shihaisong Capital have led a $60 million series D1 round in Shansong Express, a Beijing-based startup providing short-distance and same-city logistics services, the China Money Network reported.
Shunwei Capital, SIG, BHG Long Hills Capital, Lighthouse Venture Capital, and Hearst Ventures also participated in the round.
Founded in 2014, Shansong Express has over 100 million users and operates in 200 cities in China. It focuses on short-distance, inner-city deliveries and guarantees a one-hour or less delivery time for distances within 5 km.
In June last year, Shansong Express raised $50 million Series C+ round led by Shunwei Capital and Beijing Hualian Group. Earlier, it raised a $50 million series C round from SIG Asia Investment and YI Capital.
The Beijing-based inner-city logistics startup secured an undisclosed series A round funding from CDH Investments, series B round led by JD Capital, and series B+ round from Tiantu Capital.
China’s same-city delivery was the fastest growing sector among various logistics businesses. It is expected the market will reach over RMB200 billion ($29 billion) in 2020, according to the report.
China’s second-biggest e-commerce firm JD.com In January was said to kick off a fundraising round at its logistics unit with a target of at least $2 billion, with plans to eventually list the business overseas.
JD.com invited a select group of investors to join the funding round that values its logistics business, JD Logistics, at around $10 billion, according to a Reuters report.
The move comes as China’s major e-commerce companies are looking to bulk up their logistics businesses to support their global expansion ambitions and boost revenues by offering services to third-party entities.