Boxful, a Hong Kong-based startup that enables customers to store items in warehouses, has landed US$18 million in funding to expand its business outside the city.
The latest funding round brings the total to US$26.1 million. The company plans a public listing soon, according to Carl Wu, its co-founder and executive chairman.
The fundraising was led by China property developer Shimao Property. Participating investors included Shui On Land, Nan Fung Group, Singapore-based Prima Group, Newleaf Pacific, Rockpool Capital and Thing On Group.
The funding round was oversubscribed two times. Existing investors in Series A and seed round also participated, said Wu.
About 70 percent of the new funding will be used to expand Boxful’s business to mainland China and other markets in Asia, according to Norman Cheung, chief executive and co-founder.
Cheung said the company plans to enter the Shenzhen market in the first quarter next year. He expects the pricing of mini storages in the mainland to be cheaper than that in Hong Kong considering the lower living and operating costs there.
Cheung said Boxful will cooperate with several investors. Details will be announced within months.
The majority of Boxful’s clients are household customers which it targets to get a foothold in the mainland market.
Wu expects the service will increasingly appeal to business users in the mainland.
Boxful is considering an initial public offering as an exit for its angel investors, Wu said, adding that the company now generates a net operating profit two years from its launch.
Antony Leung Kam-chung, chief executive of local property developer Nan Fung Group and a former financial secretary, personally invested in Boxful through his venture capital New Frontier Group last year.
Founded in 2015, the storage startup has two logistics centres in Hong Kong and Taipei operating more than 30 storage facilities.
This article appeared in the Hong Kong Economic Journal on Dec. 6
Translation by Ben Ng
[Chinese version 中文版]
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