GoGoVan, a Hong Kong startup that has created an app-based platform for logistics services through vans, will be merging with mainland-based 58 Suyun, a freight unit of internet marketplace 58 Home.
When the transaction is completed, 58 Home will emerge as the largest shareholder in the new entity, the Hong Kong Economic Journal reports.
The combined entity will stand a chance to be identified as a “unicorn”, an unlisted startup which carries a valuation of over US$1 billion.
When an IPO happens, Hong Kong is likely to be the first choice for the listing, the report said.
Angel investor Click Ventures noted that merger activities have become more popular in the startup arena in recent years, and that business expansion often picks up pace after such moves.
GoGoVan was established in 2013 by three young Hong Kong men who returned to the city after studies in the United States. So Chi-on, chief executive of AV Concept, was among the early investors, as was Cyberport.
The startup later attracted other investors including big players like Alibaba and New Horizon Capital. It has so far raised a total of US$40 million.
GoGoVan’s co-founder Steven Lam Hoi-yuen will be named chief executive of the merged firm, whereas 58 Home’s founder and chief executive Chen Xiaohua will be chairman.
The merged entity will keep “GoGoVan” as its English name, whereas its Chinese name will be the same as that of 58 Suyun.
Founded in 2014, 58 Home is a subsidiary of 58.com, a Chinese online classified information platform which is listed in New York and majority-owned by Tencent.
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