On-demand logistics and delivery company Lalamove is close to completing a $1.5 billion financing round that would bring its valuation to around $10 billion, according to Chinese media.
The company, founded in Hong Kong and headquartered in Shenzhen, closed its first two investments of the series F funding round late Wednesday led by returning investor Hillhouse Capital, raising $1.3 billion, 36 Kr reported.
They are now working on closing another investment worth $200 million, the report added. Pandaily has reached out to Lalamove for comment.
If confirmed, the fresh funds will come less than a month after the firm raised $515 million in a Series E funding round in December, led by Sequoia Capital and joined by Hillhouse Capital and Shunwei Capital.
Lalamove, also known as Huolala (货拉拉) in China, provides van-hailing and courier services for individuals and businesses. Its platform boasts 480,000 monthly active drivers and 7.2 million monthly active users across 352 cities in China.
“The market will further expand and penetrate into fourth and fifth-tier cities, and we believe that the transformation of China’s freight industry by mobile internet is far from being over,” Lalamove founder Zhou Shengfu said, adding that the firm will continue to explore and develop intelligent logistics capabilities.
The logistics industry in China suffered a hit during the coronavirus pandemic, with Lalamove’s monthly order volume plunging as much as 93%. Fortunately, the business saw a strong rebound during the country’s “Golden Week” holiday in October, with order volumes jumping 82% year-on-year, the company said.
Lalamove also operates in 24 overseas markets across Asia, Latin America and entered the US in October last year.
China’s on-demand logistics sector is highly competitive amid a boom in e-commerce, with companies such as Manbang, Kuaigou and Didi emerging as market leaders.