Lalamove banks $515m in series E funding

On-demand logistics major Lalamove said it has raised US$515 million in a series E round led by Sequoia Capital China.

Existing investors including Hillhouse Capital and Shunwei Capital also followed on, according to a statement.

Photo credit: Lalamove

Known as Huolala in China, the Hong Kong-based company offers last-mile logistics solutions through its app. In addition to the two markets, Lalamove has operations in Indonesia, Malaysia, Singapore, Thailand, Vietnam, India, and the Philippines.

The company said it plans to use the new funds to further expand its business, diversify its business layout, and bolster its logistics data intelligence.

According to the announcement, Lalamove saw its shipment volume drop by 93% during the start of the year amid the Covid-19 pandemic. However, as the spread of the virus eased, the company said it achieved a strong rebound in orders.

As of the end of November 2020, Lalamove said its business scope has covered 352 mainland Chinese cities, with 480,000 monthly active drivers and 7.2 million monthly active users on the platform.

In October, Lalamove announced its expansion into the US after making its services available in Dallas, Texas.

“Following our success in Asia and Latin America, we saw the US as the next logical market to make on-demand and same-day delivery possible for everyone at the touch of a button,” the company previously told Tech in Asia.

Lalamove’s announcement follows reports last week saying that the startup was seeking to raise at least US$500 million in additional capital at an US$8 billion valuation. The round also comes after the company raised US$300 million in a series D round led by then new investors Sequoia China and Hillhouse Capital.