Lalamove, a Hong Kong based on-demand delivery company, completed its Series B Financing round, raising USD 30 million.
The Series B Financing round was led by Xianghe Capital, a Beijing VC firm founded by former Head of Baidu M&A, Mr Hesong Tang, with participation from Blackhole Capital and existing shareholders MindWorks Ventures, Crystal Stream and Thailand’s Asia Plus Group Holdings. The investment round exceeds its previous three rounds of financing, bringing the startup’s total funding to a combined USD 60 million.
With the investment, Lalamove will continue to expand aggressively in Asia, where it plans to launch in an additional 60 cities by the end of 2017. It already maintains the largest service area in Asia for intracity delivery, where its app connects users with more than 500,000 delivery drivers.
“Logistics is a big market – a USD 1.7 trillion market in China – and it accounts for up to 27 percent of GDP for some countries in Southeast Asia; it is underpenetrated by mobile internet,” Mr Shing Chow, Lalamove Founder and CEO, said. “Our users have said they want faster and simpler ways to send things in their cities and we have proven that we can help them deliver anything in less than an hour.
“The evolution of the logistics industry has not been as rapid as some other markets like communication, but we believe we are at a tipping point where transformation will now happen very rapidly. We will see some amazing companies built this sector.”
Lalamove’s fast growth was enhanced by key partnerships with the world’s foremost tech companies. In 2016, Lalamove partnered with LINE, one of the world’s leading mobile platforms, to develop the LINE MAN app, which gives users the ability to quickly purchase and receive documents, packages, food and grocery items in Thailand. The company previously developed enterprise solutions for Google and IKEA as well.
“In our two years of operations in Bangkok, Lalamove has become the city’s leading on-demand delivery app and we have witnessed significant growth both from users and drivers. This funding will not only enable us to expand to other cities, but also to offer additional services to meet the needs of our users and to further develop and upgrade the app with new features,” pointed out Chanon Klahan, Lalamove Thailand’s Managing Director.
“Lalamove is a textbook example of how the internet helped to improve a traditional industry,” Mr Hesong Tang, Founder of Xianghe Capital, said. “We appreciate the vision and determination of Mr Shing and his team, and believe this rapidly expanding company will become a hugely influential enterprise.”
“Lalamove is not only the first real-time intracity logistics company, it is expected to become the biggest and most successful in Asia, and potentially worldwide,” said Mr David Chang, Founding Partner of MindWorks Ventures. “Intracity logistics is a high-frequency enterprise, and will become a very important traffic portal, ensuring its foothold in a massive global market.”
“We are excited to once again participate in this round of funding with Lalamove and to support their team to reach the next level of growth in Thailand and beyond,” added Asia Plus Group Holdings’ CEO Dr. Kongkiat Opaswongkarn.