On-demand logistics platform Lalamove has raised USD 515 million in its Series E round led by Sequoia Capital China and joined by Hillhouse Capital as well as Shunwei Capital, the company said on its website on Tuesday.
The company was founded in Hong Kong in 2013 and has been in operation in 352 cities on the Chinese mainland, connecting 480,000 drivers, while serving 7.2 million monthly active users. Lalamove’s customers include individuals who want to move home, as well as corporate clients such as e-commerce giant JD.com, state-owned oil refiner Sinopec, and retailer 7-Eleven.
“The market will further expand and penetration into fourth and fifth-tier cities will continue to accelerate,” said Zhou Shengfu, founder of Lalamove, adding that he is convinced that the transformation of China’s freight industry by mobile internet is far from being over.
The fundraise follows another big deal in the on-demand cargo shipping sector. Manbang, which was created in November 2017 after the merger of truck-hailing rivals Yunmanman and Huochebang, raised USD 1.7 billion from investors including Sequoia Capital China and Hillhouse in November, Securities Daily reported. Manbang has more than 10 million drivers and 5 million cargo owners on its platforms.
In addition, Didi Chuxing, Chinese largest ride-hailing platform, recently also ventured into the sector, unveiling a Huoyun channel inside its app, KrASIA reported. The ride-hailer’s freight business has covered eight cities on the Chinese mainland, including Shanghai and Hangzhou, achieving more than 100,000 daily orders, according to a Securities Daily report in November.