Chinese courier start-up gets $50m Series C-plus
Chinese intercity courier services provider Shansong has secured an extended Series C round of funding led by Shunwei Capital Partners and Chinese retailer Beijing Hualian Group.
Hearst Communication, a US-based publishing firm, also came into the round, alongside existing investor Prometheus Capital. The extension brings Shansong’s overall Series C to $100 million, following a $50 million commitment in February.
The three-year-old company provides regional and same-city delivery services to Chinese merchants and individuals. Clients place their orders through WeChat and the company's mobile app, and then independent couriers then bid for the jobs. Couriers are ranked based on their customer service ratings. Shansong guarantees delivery within one hour to destinations no more than five kilometers from one of its warehouses.
The company covers 31 cities, with more than 250,000 couriers and 28 millions users on its platforms. Shansong collects a 20% commission on each transaction, which is worth RMB25 ($3.7) on average. It managed to break even in April last year.
Matrix Partners China and CDH Investments provided an undisclosed Series A round for Shansong in 2014. Later the company received a $50 million Series B from JD Capital, Lighthouse Capital and Tiantu Capital.
Following the most recent investment, Shansong plans to consolidate its market leading position, enhancing its last-mile intercity delivery services and develop new technology. It also wants to expand its network to include other geographies.
Other PE and VC investments in this space include Yunniao Distribution, a platform for sourcing intercity courier services, and Linqu, which operates at a similar model to Shansong.
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