<article>Hangzhou-based local courier delivery service start-up <a href="http://www.123feng.com" target="_blank">123Feng.com</a> has completed a $13-million series A+ round from <a href="http://dealstreetasia.com/tag/matrix-partners" target="_blank">Matrix Partners</a> and <a href="http://dealstreetasia.com/tag/lightspeed-venture-partners" target="_blank">Lightspeed Venture Partners</a>.</article>

Hangzhou-based local courier delivery service start-up <a href="http://www.123feng.com" target="_blank">123Feng.com</a> has completed a $13-million series A+ round from <a href="http://dealstreetasia.com/tag/matrix-partners" target="_blank">Matrix Partners</a> and <a href="http://dealstreetasia.com/tag/lightspeed-venture-partners" target="_blank">Lightspeed Venture Partners</a>.
According to report from <a href="http://36kr.com/p/5038827.html" target="_blank">36kr</a> (page in Mandarin), China&#8217;s delivery venture, led by CEO and founder Feike Zheng, secured a Series A investment worth several million dollars in January 2015. Launched in 2014, the venture focuses on providing last mile delivery services to O2O (online-to-offline) companies, restaurants, in addition to fast VIP personal delivery services.
123Feng.com provides last-mile delivery services in mainland Chinese cities, supporting short-distance point to point distribution, truck-run trunk lines serving fixed locations, and the use of electric cars and tricycles for distribution of goods in an urban network.
It describes itself as enabling delivery services via multiple channels and facilitating the distribution of goods from O2O orders, integrating manpower and vehicles into a a city logistics delivery solution for commercial vendors. 
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/indian-food-app-tiny-owl-raises-7-6m-from-existing-investors-sequoia-matrix-partners-17696/">After job cuts and restructuring, TinyOwl raises $7.6m from existing investors Sequoia, Matrix Partners</a>
According to the company, it claims to have stabilised at a volume of 100,000 orders in Hangzhou. Long-distance transport seems to be the major revenue generator or the firm, as well as a major driver of profit growth. 123Feng.com is reporting that it has achieved a break-even in some services, with others generating a profit. 
Lightspeed Venture Partners senior executive <a href="http://lsvp.com/team/harry-hao/" target="_blank">Zhen Hao Wei</a> said: &#8220;On-demand services are big trend in growth markets in China and around the world. Given the CEO&#8217;s  momentum, I believe he can lead the team in the field to create a great company.&#8221;
In 2013, <a href="https://www.linkedin.com/pub/sucharita-mulpuru/0/66/686" target="_blank">Sucharita Mulpuru</a>, a retail analyst at Forrester Research, said in an <a href="http://www.nytimes.com/2013/11/24/technology/in-war-for-same-day-delivery-racing-madly-to-go-last-mile.html?pagewanted=all&amp;_r=0" target="_blank">interaction</a> with The New York Times said “One thing Amazon has done very successfully is they’ve owned the entire value chain. They’ve owned the last mile, the moment that matters. That moment is when the package arrives.Once you can own the moment that matters, you build a loyal customer base.”
Given the <a href="http://prospress.com/what-is-the-last-mile/" target="_blank">centrality of last-mile delivery capabilities to e-commerce and O2O operations</a>, the market is likely to evolve further as new vendors emerge to cater to this <a href="http://sloanreview.mit.edu/article/winning-the-last-mile-of-ecommerce/" target="_blank">critical segment of delivery fulfilment</a> for businesses with significant online operations.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/exclusive-ahmedabad-based-khushi-foods-raises-8m-from-pe-investors-20571/">Exclusive: Ahmedabad-based Khushi Foods raises $8m from PE investors</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-online-marketplace-for-ethnic-products-craftsvilla-raises-34m-from-sequoia-lightspeed-20111/">India: Online marketplace for ethnic products CraftsVilla raises $34m from Sequoia, Lightspeed</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/alibaba-to-invest-nearly-450m-in-two-new-vc-funds-targetting-hong-kong-taiwan-20562/">Alibaba to invest nearly $450m in two new VC funds targetting Hong Kong, Taiwan</a>

123Feng has secured a $13 million Series A+ investment from Matrix Partners and LIghtspeed Venture Partners.

Matrix, Lightspeed invest $13m in Chinese delivery service startup 123Feng.com

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Matrix, Lightspeed invest $13m in Chinese delivery service startup 123Feng.com

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief