Lalamove promises deliveries in 55 minutes. That concept has caught on with investors seeking logistics companies that can revolutionize a fast-changing e-commerce world, and the result is the latest unicorn in the logistics space.
The Hong Kong-based delivery company just announced a $300 million Series D funding round, bringing its total funding to $461.5 million in seven rounds. The latest funding was led by Sequoia Capital China and Hillhouse Capital Group. Shunwei Capital, PV Seed Fund LP, MindWorks Ventures and Eastern Venture Capital are also investors.
Started as EasyVan before changing its name, Lalamove now operates in more than 100 cities in Asia, mostly in China. The funding will fuel expansion in other Asian markets.
The company has taken an Uber-style approach to delivery, using local drivers who work when they want to work. Customers simply request a delivery through an app and an available driver will accept, make the pickup and delivery.
Most customers are business or corporate accounts. Companies using the service include Burger King, Dairy Queen, Samsung and Tesco/Lotus. Deliveries are tracked through the mobile app in real time and drivers need not carry any cash as all transactions are paperless.
Founder Shing Yuk Chow said the funding will be used to expand its operations in India while improving it technology in China and Southeast Asia. Expansion into new verticals is also possible.
Chow noted that the logistics industry in China is becoming more cost-efficient, with its total share over GDP decreasing from 18 percent to 14.6 percent in the past five years.
“We are convinced that the impact of deepening internet penetration and new technologies will continue to drive efficiency within the logistics sector, and Lalamove is well-positioned to be at the forefront of transformation,” said Chow.
The company delivers items as small as documents to as large as furniture. Its couriers have a range of vehicles, from motorcycles to medium-duty trucks.