Lalamove, Logistic Startup, Raises $100 Million from China

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Lalamove, formerly known as EasyVan, is an on-demand logistics company in Asia that matches users and drivers to provide same-day delivery and courier services. This Hong Kong based start-up announced it Series C funding of $100 million, led by mainland’s ShunWei Capital. Another start-up GoGoVan’s merger with 58 Suyun has reportedly made the combined group worth $1 billion.

Blake Larson, the head of Lalamove’s international division says, “Ninety-seven percent of our business is in SMEs. While we still get a decent consumer usage-and we are happy to serve them – you only move once a year. For us, that payback is a lot more difficult.”

Shing Chow, the founder and the CEO of the company explained, “We look for cities that have reached critical mass-so large, major cities where we see there is a lot of fragmentation, and that require improvement in logistics.”

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The company which is known as Huolala in mainland China and Lalamove all over the world is now active in hundred cities, meeting the target it had set for itself for the year 2017. Most of those cities are in China, where Lalamove has “saturated almost 80 percent of the market”. The rest are in Southeast and East Asia like, Singapore, Ho Chi Minh City, Bangkok, Manila, Taipei and not to forget Hong Kong.

The big clients of this company are IKEA, Burger King, Line. Larson further says, “anyone who doesn’t (want to) think of logistics and competency and is looking for ways to reduce capital expenses. Lalamove (can) provide scaled delivery without companies having to hire or train drivers, or think about any of the logistics.”

When asked whether the company is looking to IPO next, Chow answered that they are always preparing to be IPO ready but have no direct plans to follow with an IPO.