Lalamove, a Hong Kong-based on-demand delivery firm that provides immediate and scheduled courier services through motorcycles, vans, and trucks, announced on Tuesday that it has raised $515 million in a Series E round of financing solely from existing investors.
Sequoia Capital China was the lead investor, while Xiaomi’s investment arm Shunwei Capital and Asia-based PE firm Hillhouse Capital also joined hands to invest in the latest round, the investee said in a statement.
Sequoia Capital China along with Shunwei Capital, Hillhouse Capital, supply chain focused Eastern Bell Capital, Xiang He Capital and others had collectively pumped $300 million in the firm’s Series D round in February 2019.
Shunwei Capital had also participated in Lalamove’s $100 million Series C round in 2017.
Lalamove will use the latest proceeds to increase its market presence, for business ecosystem consolidation, and logistics intelligence.
Lalamove — also known as Huolala in mainland China — was seeking to raise at least $500 million at a $8 billion valuation, which is four times that of its 2019 valuation, Bloomberg reported on December 16.
Set up by Stanford alumnus and former professional poker player Chow Shing-yuk, Lalamove says it is focussed on making same-day delivery possible for everyone in 24 markets across Asia, Latin America, and the US.
As of November this year, its operation covers 352 cities in mainland China with monthly active drive partners and users amounting to 480,000 and 7.2 million, the company said.
The year 2020 was a busy year for Lalamove in terms of market expansion. Apart from Asia and Latin America, it ramped up efforts opening up US markets from the third quarter of 2020, with a target to bring its services to as many local communities as possible, Lalamove said in an exclusive interview with DealStreetAsia earlier in August this year.
Lalamove is also backed by leading investors like MindWorks Ventures — a Hong Kong-based venture capital firm that invests in internet, enterprise and consumer— Crystal Stream, Sirius Venture Capital, and 01VC.