Hong Kong could get second unicorn in Lalamove
LALAMOVE, the on-demand, same-day delivery and logistics provider from Hong Kong, announced that it’s closed its Series C funding round having raised yet another US$100 million from investors, which brings it perilously close to unicorn status.
The additional funding is placing the startup just a shy of becoming Hong Kong’s second unicorn after runaway success GoGoVan.
All you need to know about high-flying unicorns GoGoVan and Lalamove https://t.co/q2ePe4BItO
— kbc (@NTKRNow) October 12, 2017
The recently conducted Series C funding round was led by ShunWei Capital. In a statement published in AsiaOne, Cheng Tian, a partner in the firm, said that ShunWei Capital was confident Lalamove would stay true to its potential, partly because the upstart company has produced so many results in the last couple of years.
“Lalamove is an important investment for us in the mobile logistics sector. We foresee strong growth in last-mile delivery and this has been reflected in Lalamove’s growth and performance,” he said in a statement.
“In only a couple years, Lalamove’s standardization, speed of service, lean operations and execution strategies have all drastically improved efficiency, lending to their excellent reputation across Asia.”
Lalamove founder and CEO Shing Chow stated that its latest round of funding would aid the company in its expansion. In a company statement, Chow further revealed that Lalamove would start testing the waters in areas where further growth might be possible.
“After our Series B, we set out an ambitious goal to achieve leading delivery coverage across Asia and we’ve managed to exceed our expectations,” he said.
“We will continue to quickly expand into cities where we feel we can provide the simplest and fastest delivery service in the market.”
Lalamove made its mark in the logistics sector due to its assertive and consumer-centered business model, according to Tech Crunch. The company fully utilized the power of the Internet and the convenience of mobile apps, which has helped make the service incredibly popular and successful among small and medium-sized enterprises in the Asian region, especially those that require rapid, on-demand delivery services.
In a statement to Forbes, Blake Larson, the head of Lalamove’s international division, remarked that the logistics firm gets a lot of its business from SMEs.
“Ninety-seven percent of our business is in SMEs,” he said to Forbes.
Currently, Lalamove boasts a lineup of two million drivers servicing 15 million registered users. Lalamove drivers service various businesses via vans, trucks, and even motorbikes. This unique business model, as well as its 24/7 service, driver rating system and real-time GPS tracking feature, enables Lalamove to function as one of the most flexible logistics firms currently active in Asia.
With an additional US$100 million in its funding, Lalamove will be looking to bring more efficiency to its customer service. With this, SMEs in Hong Kong, China and other parts of Asia currently using the logistics service would be able to scale their deliveries at an accelerated pace.