N5 Capital, V Star Capital and Shihaisong Capital have led a US$60 million series D1 round in Shansong Express, a Beijing-based inner-city logistics start-up focused on providing last-mile delivery solutions.
Shunwei Capital, SIG, BHG Long Hills Capital, Lighthouse Venture Capital, and Hearst Ventures also participated in the round, according to Shansong Express’s announcement on its official WeChat account today.
Founded in 2014, Shansong Express, also known as Flash Delivery, focuses on last-mile, inner-city deliveries, guaranteeing one-hour or less delivery times for distances within five kilometers. Users can place their orders on WeChat, Shansong Express’s website or app. As of August, it operated in 222 cities in China and it served more than 100 million users.
In June 2017, the company raised a US$50 million series C+ round led by Shunwei Capital and Beijing Hualian Group. In February 2017, the company raised a US$50 million series C round from SIG and Prometheus Capital.
From 2008 to 2015, China’s same-city delivery was the fastest growing sector among various logistics businesses, with a 44% annual growth rate, according to China’s State Post Bureau. It is expected the market will reach over RMB200 billion (US$29 billion) in 2020.
In July, Alibaba’s logistic arm Cainiao Network made a strategic investment of US$290 million in Hangzhou-based logistic service provider Dianwoda to become its controlling shareholder.