Lalamove will expand its network to other small Chinese cities after raising $ 515 million in Series E funding, the on-demand logistics company said on its website. The round was chaired by Sequoia Capital China with the participation of Hillhouse Capital and Shunwei Capital. All three are returning investors.
According to Crunchbase data, the total of Lalamove is approximately $ 976.5 million. The company's last funding announcement came in February 2019, when it achieved unicorn status with a Series D of $ 300 million.
Bloomberg reported last week that Lalamove was targeting at least $ 500 million in new funding at a valuation of $ 8 billion, or four times what it had raised at least a year.
Established in 2013 for on-demand delivery within the same city, Lalamove has since expanded its business to include freight services, corporate logistics, relocation and vehicle rental. In addition to 352 cities in mainland China, Lalamove also operates in Hong Kong (where it was founded), Taiwan, Vietnam, Indonesia, Malaysia, Singapore, the Philippines and Thailand. The company first entered the US in October and currently claims around 480,000 monthly active drivers and 7.2 million monthly active users.
Part of the Series D was earmarked for expansion into India, but Lalamove was one of 43 apps banned by the government citing cybersecurity concerns.
In his announcement, Shing Chow, CEO of Lalamove, said the E Series will be used to enter additional fourth and fifth tier cities in China. "We believe that the transformation of the Chinese logistics industry through the mobile Internet is far from over."
Other companies that recently completed major financing rounds for their logistics operations in China are Manbang and YTO.
Lalamove (known as Huolala in Chinese) announced the E-Series announcement earlier this year saw the company experience a 93% drop in shipment volume due to the COVID-19 pandemic, but rebounded strongly with an order volume of 82%. Year after year before Double 11.