Beijing-based private equity fund InnoVision Capital has led a US$250 million funding round in 58 Suyun, a freight business unit under Chinese online marketplace 58 Daojia.
Alibaba’s logistic arm Cainiao Network, the Russia-China Investment Fund (RCIF), Qianhai Fund of Funds, and 58 Daojia also participated in the round, according to 58 Suyun’s announcement.
58 Suyun was founded by 58 Daojia in 2014 to focus on intra-city logistics and freight business. As of July, the company’s business covers 339 cities across six countries and regions and serve about 8 million users.
In August 2017, 58 Suyun merged with GoGoVan, a Hong Kong-based intra-city logistics online platform founded in 2013. GoGoVan had operations in China, Taiwan, Singapore and South Korea and the merger accelerated 58 Suyun’s globalization process.
Since last year, 58 Suyun has been expanding to smaller cities in China and continues to expand in Southeast Asia.
The deal is Cainiao Network’s second logistics investment this week. On July 11, Cainiao made a strategic investment of US$290 million in Hangzhou-based logistic service provider Dianwoda to become its controlling shareholder. Dianwoda provides outsourced delivery services for enterprises and delivery services for individual consumers.
In May, Cainiao also joined Alibaba to lead a US$1.38 billion investment in Chinese express delivery company ZTO Express.