Hong Kong-based start-up Lalamove has completed a Series D round of investment by raising $300 million. Lalamove is an on-demand logistics company, and it plans to use this money to expand across the Asian markets. Through this latest round of funding, Lalamove has managed to break into the unicorn club, which is a term used to describe companies that are valued over $1 billion.
Lalamove was founded in the year 2013 by Stanford graduate Shing Chow. The company provides delivery and logistics services like Uber, but it mainly focuses on corporate clients and business individuals, unlike Uber. This means that Lalamove has a more loyal customer base who are willing to pay a premium for their services.
Lalamove split the Series D round into 2 parts, where the part 1 round was led by Hillhouse Capital and the part 2 round taken by Sequoia China. Lalamove is yet to confirm any details behind the investment size of each round. Other investment firms that took part in the Series D were PV Capital, Eastern Bell Venture Capital, and other firms such as ShunWei Capital which is a returning investor to the firm. Xiaomi Capital also took part in the Series D.
The latest round of investment takes Lalamove’s total investment number to be over $460 million. The company’s last Series C round was performed back in 2017 where the firm managed to raise $100 million. Lalamove doesn’t disclose any details behind the valuation of the company, but Blake Larson, who is the company’s head of international, revealed that the company was just shy of the $1 billion mark during the Series C round of investment.
The biggest market of Lalamove is in China, where the company covers a network of 130 cities with more than 2 million registered drivers under its network. Most of the drivers use vans, cars, and motorbikes for the delivery services of the company.
Lalamove also operates in its base Hong Kong as well as Vietnam, Taiwan, Singapore, Malaysia, Indonesia, Thailand, and the Philippines. The company has operations in over 11 cities besides China, and this latest investment will help the company to expand its operations into the South Asian market as well as India.
Larson believes that if the company can do well now, it will help them deliver its services to more than half of the population of the world.
The company also plans to expand its operations in China and cover new geographic locations and introduce new services under its umbrella.
Lalamove has begun to help drivers by helping them with financial packages to purchase new vehicles. The company has also started offering dedicated services to its corporate clients.
Lalamove claims that more than 3 million drivers have registered under its network, and the company has collectively served more than 28 million customers till date across all cities.
Lalamove employs more than 4000 people across its businesses. The company has already begun to turn a profit in a lot of cities. The blueprint of success for the company is to turn profitable after two years of entering a new city.
Lalamove still has no plans to offer its shares in the share market, although its executives are focused on making the company IPO ready for when the right time comes.