Xianghe Capital, a Beijing-based venture capital firm founded by the former head of Baidu Inc’s merger and acquisition department Hesong Tang, has led a US$30 million series B round in Lalamove, a Hong Kong-based on-demand delivery start-up.
New investor Blackhole Capital, as well as existing investors MindWorks Ventures and Crystal Stream, also participate in the round, which brings the company’s total funding to a combined US$60 million.
“Lalamove is a textbook example of how the Internet helped to improve a traditional industry,” Hesong Tang, founder of Xianghe Capital, said in a statement.
Founded in 2013, Lalamove provides on demand deliveries via its website and mobile app, and allows users to register as a delivery driver after a short training. Currently, it operates in 45 cities in China and Southeast Asia.
With the new investment, Lalamove will continue to expand aggressively in Asia, where it plans to launch in an additional 60 cities by the end of 2017. It already maintains the largest service area in Asia for intra-city delivery, where its app connects users with more than 500,000 delivery drivers.
“Logistics is a big market – a US$1.7 trillion market in China – and it accounts for up to 27% of GDP for some countries in Southeast Asia,” said Shing Chow, Lalamove’s founder and CEO.
In 2016, the company cooperated with mobile communication app Line to launch LINE MAN, an app designed to better promote Lalamove in Thailand. It also provide services to big companies like Google and Ikea.
Originally founded as EasyVan in Hong Kong, Lalamove previously received US$30 million in three rounds from a number of investors including Crystal Stream, MindWorks Ventures and a Taiwan-based business incubator Appworks.