Manila, Philippines, 21st February 2019 - Lalamove, Asia’s leading on-demand delivery and logistics service provider that originated in Hong Kong, closes USD 300M in its latest D1 round led by Hillhouse Capital and D2 round led by Sequoia China. This round of funding is another vote of trust from investors in the wake of Lalamove’s consistent growth.
The funding will be channeled towards achieving the primary goal of expanding Lalamove’s operations in Southeast Asia, India, Mainland China and other untapped cities. Besides that, the funding will be used to propel Lalamove’s technological and innovation capabilities. More excitingly, this new development will open an opportunity for Lalamove to venture in the automotive business.
“Technology is redefining what can be achieved in the logistics industry, and Lalamove’s outstanding management team has placed it at the forefront of this trend,” said Lei Zhang, founder and CEO of Hillhouse Capital. “We have been impressed with the company’s success in Southeast Asia and Mainland China, and believe it is well-positioned to bring more efficient and convenient freight services to the sector.”
According to Neil Shen, Founder and Managing Partner of Sequoia China, "Shing, the founder and CEO of Lalamove, is a role model for Hong Kong’s new generation of innovative entrepreneurs. Shing returned to HK after completing his studies and plunged himself into the entrepreneurial wave of ‘Internet Plus,’ becoming a figure of entrepreneurial success”.
Shing shared in response, “I am very grateful to Hillhouse Capital Group, Sequoia China, and all the new and previous shareholders for their confidence and support. We are convinced that greater internet penetration and new technologies will continue to drive efficiency within the logistics sector. Lalamove is well positioned to spearhead this transformation.”
Driven by technological innovation, well-run operations, efficient platform matching and quality service, Lalamove has been able to differentiate itself from other players and secure a leading position in the industry. Since its very inception, Lalamove has stayed true to its global vision, and implemented a successful two-pronged strategy, focusing on both domestic and international markets. As a result, the company has emerged as one of the greatest enterprises in the Greater Bay Area. With Shing at the helm, the company will become an outstanding example of China’s homegrown global enterprises.
In addition to tremendous growth of Lalamove’s business in Mainland China, its international business also accelerated, with its exponential growth in the Philippines as one of the main growth drivers, plus the expansion in 3 new countries including Malaysia, Indonesia, and most recently, India. In total, the company currently operates in 11 cities in Asia outside of Mainland China and anticipates many more cities in the near future with a strong focus on India.
Lalamove was launched in Manila, Philippines, in 2016, and has indeed helped businesses, big and small, in their logistical needs. It has also provided livelihood to many Filipino partner drivers. Todate, Lalamove Philippines has grown to beyond 120,000 customers and more than 20,000 partner drivers, and these figures are expected to increase further with the recent expansion in Cebu City.
With this funding, the Filipino business clients, customers, and partner drivers are poised to enjoy additional services and broader delivery coverage. “This funding will enable us to further empower communities through our technology and services, elevating the lives of partner drivers who can address the logistical needs of businesses and consumers. We are optimistic that through this, Lalamove can bring in positive change and help move the country forward.” – Dannah Majarocon, Managing Director of Lalamove Philippines.
Founded in Hong Kong in 2013, Lalamove is an on-demand logistics company that matches drivers with customers and SME businesses to fulfil same day deliveries. Lalamove’s mission of making local deliveries faster and simpler is achieved through innovations such as instant order matching, real-time GPS vehicle tracking, 24/7 services, and a driver rating system. SMEs account for over 97% of all enterprises in Asia.* Lalamove allows these businesses to scale their deliveries and operations at an accelerated rate. To date, Lalamove has a fleet of 3 million drivers with a customer base of 28 million strong across Mainland China and Southeast Asia countries.
About Hillhouse Capital
Hillhouse builds businesses that stand the test of time. It invests globally, with a focus on Asia, and has the flexibility to work across the equity spectrum, from seed investments to buyouts and listed equities. Hillhouse deploys technology to drive innovation, with sustainable, long-term growth as the ultimate goal. Over more than a decade, it has worked alongside iconic companies that have redefined their industries, including Airbnb, Beigene, Belle International, Didi, JD, Meituan, NIO, Peet’s Coffee, Tencent, Traveloka, Uber, and WuXi AppTec.
About Sequoia China
The Sequoia China team helps daring founders build legendary companies. In partnering with Sequoia China, companies benefit from our unmatched community and the lessons we’ve learned over 47 years. As “The Entrepreneurs Behind The Entrepreneurs”, Sequoia China focuses on four sectors: TMT, healthcare, consumer/service, and industrial technology. Over the past 14 years we’ve had the privilege of working with more than 500 companies in China.
Other participating investors in the D Series Funding:
About Shunwei Capital
Shunwei Capital is a venture capital firm based in China that invests in early to growth stage founders and disruptive business models in mobile Internet, IoT, Fin-Tech, Ed-Tech, artificial intelligence and robotics. Shunwei’s investment portfolio includes Xiaomi, Ninebot (Segway), and YY, among others. Founded in 2011 by Lei Jun (founder of Xiaomi) and Tuck Lye Koh, Shunwei Capital currently manages over $2 billion (USD) across its funds.
About Xiang He Capital
Xiang He Capital is a venture capital fund with an interest in early and growth stage investments in China. The fund focuses on AI, telecommunications, media, technology and disruption of traditional industries such as online education, logistics, fin-tech, online medical systems, enterprise services, B2B and internet.
About MindWorks Ventures
MindWorks Ventures is a Hong Kong-based venture capital firm that invests in high-growth technology startups in the post-seed stage with a focus in the Southeast Asia and Greater China. Its founding partners David Chang and Joe Chan are seasoned investors who have built and backed global companies in the US and Asia. Their multi-stage venture funds invest in companies while supporting talented founders to build technology for rapid adoption, scalability and disruption.
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