INSUBCONTINENT EXCLUSIVE:
Logistics on-demand service GoGoVan became Hong Kong first billion-dollar startup via a merger last year, and now is doubling down on growth
after raising $250 million in new capital.
The new round was led byInnoVision Capital, with participation from the Russia-China Investment
Fund, Hongrun Capital and Qianhai Fund of Funds
Two other notable investors include Alibaba Cainiao logistics subsidiary — Alibaba is already an investor via its Hong Kong
entrepreneurship fund — and58 Daojia Group, the parent of the &58 Suyun& business that merged with GoGoVan.
There more capital coming soon
it seems, with GoGoVan saying in an announcement that the $250 million is &the first phase of its new round of funding.& Despite reaching
unicorn status via the merger, GoGoVan didn&t disclose a valuation for this new round.
The company plans to use the money to expand its
business into new markets, and in particular India and Southeast Asia,having focused on China primarily to date
Together with58 Suyun, GoGoVan claims to cover 300 cities with some eight million registered users and 2,000 staff.
The service itself is
anchored around short distance logistics and trips, but GoGoVan CEOSteven Lam explainedthatthe company plans to soon introduce a
door-to-door option and other offerings that &simplify logistics and delivery services.&
GoGoVan main rival is Lalamove, a fellow Hong
Kong-based logisticsstartup.Lalamove raised $100 million last yearat a valuation of nearly $1 billion
While GoGoVan exit was its merger, Lalamove is looking to remain independent and it has begunthinking about an IPO, which could take place
in Hong Kong, its head of international Blake Larson told TechCrunch.
GoGoVan and Lalamove are two of the last that remain standing from
what was once a very cluttered field as the rise of Uber saw dozens of companies sprout up as an ‘Uber for logistics& services
The secret to their survival Getting deep into the Chinese market is one crucial factor, but from talking to the two companies over the
years, both castthe ‘Uber for X& buzzword aside and concentrated on working with SMEs and repeat business customers rather than the
shallow (and fickle) consumer market.
Uber Cargo service, for example, offered on-demand logistics in Hong Kong but it didn&t live long
