Hong Kong's GoGoVan raises $250m
Hong Kong-based last-mile logistics company GoGoVan has raised $250 million from a group of investors led by China’s InnoVision Capital.
Other participants include Russia-China Investment Fund, Qianhai FoF, Hongrun Capital, Alibaba Group’s logistics business Cainiao, and Chinese O2O player 58 Daojia. It follows a merger last year with a freight unit of 58 Daojia called 58 Suyun that brought GoGoVan’s valuation to more than $1 billion.
GoGoVan described the latest investment as the first phase of a new funding round. The company received a Series C round of undisclosed size led by New Horizon Capital in 2016 with participation from Hotung Investment Holdings, Singapore Press Holdings, and Alibaba's Hong Kong Entrepreneurs Fund.
This followed a $10 million Series B in 2015 from a group including Chinese social media firm Renren and Shanghai Moliang Venture Capital Investment Centre, also known as MFund. A Series A round the prior year was led by Centurion Private Equity. Hong Kong incubator Cyberport provided seed funding via its Creative Micro Fund.
Launched in 2013, GoGoVan claims to be the first app-based platform for transporting goods in Asia. The service connects customers with delivery drivers within a five-kilometer radius of the package pick-up point. Operations currently encompass more than 300 cities and eight million users across Greater China, Singapore, India, and Korea.
“Since the merger, our business has been advancing rapidly,” said Steven Lam, CEO and co-founder of GoGoVan, which now operates under the name 58 Suyun in mainland China. “With the number of powerful investors on board in this round of funding, it shows that the market approves of our strategy.”
The fresh capital will be used to drive the development of both new markets and service offerings. Services expansion will include the rollout of a door-to-door service over the next few months that aims to fill demand in the small-item delivery segment. This effort is expected to be supported in part by Alibaba and Tencent Holdings, which are existing backers of 58 Daojia alongside New Horizon and KKR.
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