GoGoVan becomes Hong Kong’s first $1 billion startup following merger deal


At our TechCrunch China celebration in June we reviewed the bright potential that Hong Kong’s startup scene has, despite some massive problems. This 7 days the nation passed a notable milestone as it got its very first $1 billion valued startup, improved recognised as a unicorn.

The company in concern is GoGoVan, a logistics on-need supplier that connects van motorists and buyers for transporting merchandise. GoGoVan and other individuals like it, which include fellow Hong Kong company Lalamove, are generally labeled as ‘Uber for delivery,’ but most buyers are from the company earth.

GoGoVan has passed the $1 billion mark specifically for the reason that it is on the lookout to go beyond the B2B marketplace. It has merged with China-based 58 Suyun, a fellow logistics on-need system that is focused on serving consumers.

Over and above the strategy of marrying a company-focused assistance with a purchaser-focused presenting, the deal is also complementary in terms of geographies. 58 Suyun — which is owned by on-line classifieds giant 58.com — is current in around 100 cities in China with 1.2 million registered motorists, while GoGoVan is current in eight cities in China as nicely as China, Taiwan, Singapore, Korea and India.

The merged entity — which will be identified as GoGoVan — programs to combine the two enterprises collectively to supply GoGoVan expert services in 58 Suyun’s spots, and carry 58 Suyun’s expert services exterior of China. The freshly fashioned company has a valuation of around $1 billion, its CEO Steven Lam instructed TechCrunch in an interview.

“This deal make great sense for both of those sides,” Lam explained. “We have Southeast Asia and China with a B2b emphasis, and that’s completely distinctive from 58, which is in the purchaser marketplace. We have a leadership situation in China and in some international locations in Southeast Asia — we can do much more in Southeast Asia and beyond.”

GoGoVan CEO Steven Lam and 58 Property CEO Xiaohua Chen at an celebration asserting the merger deal

There is also a frequent investor. Alibaba invested in GoGoVan by way of its entrepreneurship fund, and it backed 58.com’s 58 Property subsidiary, which operates 58 Suyun, in a $300 million round in 2015. GoGoVan, which was began in 2014 by 5 Hong Kong founders, has raised around $26 million from investors despite the fact that its most recent Series C was undisclosed.

Lam explained that put up deal the company is on the lookout to increase upwards of $200 million for enlargement into two or a few new markets upcoming year. In 2019, he would like to transfer beyond Asia, probably into Australia and Europe, and checklist the company on a public marketplace.

“The plan is to make certain the company is all set to be detailed, but it is dependent on the marketplace circumstance. If we can be genuinely successful, we might even stay private,” Lam explained. He extra that Hong Kong, which has seen a growth in interest from tech companies, could be the IPO location, but GoGoVan is open to a U.S. listing, also.

GoGoVan isn’t alone with this ambition. Lalamove is also beginning to explore prospects to go public, also. It raised $30 million from investors earlier this year and its head of international proposed it will glance to maintain an IPO, most probable in Hong Kong, before 2020.

Showcased Picture: GoGoVan

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