All-Stars Leads $56M Round In Chinese Truck Logistics Firm Huochebang

All-Stars Investment Ltd., an alternative investment firm focused on the Internet and consumer sectors in Greater China, has led a US$56 million series B-3 round in Huochebang, a Uber-like truck logistics start-up.

A number of unnamed investors also participated in the round, according to a company announcement.

The round brings Huochebang’s series B funding round to a total of US$327 million. Three months ago, the start-up raised a US$156 million series B-2 round from Baidu Capital and All-Stars. Last December, it also received a US$115 million series B-1 round from International Finance Corp, All-Stars, Tencent Holdings Ltd., DCM and Genesis Capital.

"Huochebang is the only unicorn in the ‘Internet Plus’ logistics sector, and has build a high barrier," said Richard Ji, co-founder and chief investment officer at All-Stars. "We are optimistic about the future of Huochebang."

In 2016, the total value of external logistics goods in China reached RMB229 trillion (US$34 trillion), up 6.1% year-on-year. The total cost of external logistics accounts for 14.9% of the country’s GDP, down 1.1 percentage point year-on-year, according to the National Development and Reform Commission.

Huochebang is currently the largest online logistics platform in China in terms of the number of users, covering 0.133% of the population. Yunmanman and 58 Suyun are the second and third largest platform respectively, according to TalkingData.

Founded in 2011, Huochebang helps truck drivers find commodities to transport and vacant parking lots, facilitates truck sales and used truck auctions, as well as providing other services related to the trucking industry in China. As of this July, the platform had 4.5 million registered trucks and 880,000 registered customers.

In addition, it also cooperates with Alibaba Cloud, a subsidiary of Alibaba Group Holding Ltd., to jointly develop logistics big data covering logistic trucks routine, goods distribution and vehicles distribution.

The firm previously raised an undisclosed series A round and a series A+ round worth tens of millions of RMB from Tencent Holdings Ltd, Hillhouse Capital and DCM in 2015.

It plans to use the latest proceeds to expand its business by attracting more truck drivers, and improve the efficiency of its service by perfecting the algorithm of its matching system as well as its big data analysis.