Last-mile delivery startup GoGoVan has hauled in an investment of US$250 million, marking the “first phase” in what could prove to be the largest funding round for a logistics startup in Asia.
Beijing-based private equity firm InnoVision Capital led the round, with participation from Russia-China Investment Fund, Qianhai Fund of Funds, and 58 Daojia – the parent of Chinese freight startup 58 Suyun, which GoGoVan merged with last August. That merger saw GoGoVan surpass US$1 billion in valuation, making it Hong Kong’s first tech unicorn.
Alibaba’s logistics unit, Cainiao Network, also joined in this latest tranche of funding. In May, Cainiao committed to investing US$15.6 billion in the global logistics industry, with the aim of extending 72-hour package delivery from China to every corner of the globe and driving down the country’s logistics spend from 15 percent to 5 percent of GDP
GoGoVan co-founder and CEO Steven Lam said the company will use the fresh funds to move into new markets and expand its service offerings. In terms of the latter, it plans to provide a “door-to-door service to fulfill the demand of [the] small-item segment,” he added.
This is the latest in a string of mega-fundings for later-stage Asian logistics startups. Last October, GoGoVan’s fellow Hong Kong firm Lalamove banked US$100 million in a series C round led by Shunwei Capital, the VC firm founded by Xiaomi boss Lei Jun.