Local logistics startup Lalamove said it has completed US$100 million worth of Series C funding, led by China’s ShunWei Capital, a venture capital firm co-founded by Xiaomi chief executive Lei Jun, who reportedly regards Lalamove as his key investment in internet-based logistics services
Xiang He Capital and MindWorks Ventures also participated in the transaction.
Lalamove was founded in late 2013. The company bills itself as Hong Kong’s fastest delivery firm, with a pledge to fulfill a local order within 55 minutes.
Now partnering with two million drivers across more than 100 cities in Asia and offering services to 15 million people, the startup has cumulatively raised US$160 million.
“Sending a message just takes several seconds, while moving a cargo may take a long time,” said Lalamove founder and chief executive Chow Shing Yuk. Currently, the company can complete a cargo delivery within 46 minutes on average.
The company is working on its real-time response system, which aims to match a driver with a customer within 10 seconds of order placement, and achieve parcel pick-up within five minutes.
When the firm raised HK$230 million in Series B funding in January, it set a plan to expand into 100 mainland Chinese cities before the year-end. The goal was reached two months early. It also rolled out services in Ho Chi Minh City in Vietnam last month.
Cities in Southeast Asia have a rather different culture, and it takes time to expand presence in these markets, according to Mark Au, head of Lalamove’s Hong Kong branch. By contrast, it’s much easier to replicate its services in the mainland.
Lalamove is often compared with another Hong Kong logistics on-demand startup GoGoVan.
GoGoVan has merged with China-based 58 Suyun, with a business footprint covering mainland China, Hong Kong, Taiwan, Singapore, South Korea and India, among others. It has more than 180,000 registered drivers across 14 cities worldwide, and it has handled nearly 30 million orders so far.
When asked what the major difference is with GoGoVan, Au cited Lalamove ‘s motorcycle delivery operation.
Lalamove works with 2,000 motorcycle drivers in Hong Kong, nearly double from a year ago.
The market has strong demand for smaller deliveries, Au said.
This article appeared in the Hong Kong Economic Journal on Oct. 10
Translation by Julie Zhu
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