Lalamove Secures $515M Series E Funding - On-Demand Logistics

Following a successful $515 million Series E funding round, Lalamove intends to broaden its service area to encompass a greater number of smaller cities throughout China, as stated in a recent announcement on the company’s website. Sequoia Capital China spearheaded the investment, with further contributions from existing investors Hillhouse Capital and Shunwei Capital.

Data from Crunchbase indicates that Lalamove’s cumulative funding now totals approximately $976.5 million. The company’s previous funding disclosure occurred in February 2019, when it achieved unicorn status through a $300 million Series D investment.

Reports from Bloomberg last week detailed that Lalamove was pursuing at least $500 million in new capital, aiming for an $8 billion valuation – a figure four times greater than its previous year’s fundraising.

Established in 2013 to facilitate same-day deliveries within cities, Lalamove has diversified its offerings to include freight transport, logistics solutions for businesses, relocation services, and vehicle rentals. Beyond its presence in 352 cities across mainland China, Lalamove also provides services in Hong Kong (its initial launch location), Taiwan, Vietnam, Indonesia, Malaysia, Singapore, the Philippines, and Thailand. The company made its debut in the United States in October and currently reports approximately 480,000 active drivers and 7.2 million active users each month.

A portion of its Series D funding was allocated for expansion into the Indian market; however, Lalamove was among 43 applications prohibited by the Indian government due to stated security concerns.

In a statement accompanying the Series E announcement, Lalamove CEO Shing Chow explained that the new funding will support entry into additional fourth and fifth-tier cities in China, asserting that “the impact of the mobile internet on China’s logistics sector is still unfolding.”

Other logistics companies in China that have recently secured substantial funding include Manbang and YTO.

Lalamove (also known as Huolala in Chinese) reported a 93% decrease in shipment volume at the start of the year as a result of the COVID-19 pandemic, but has since seen a significant recovery, with order volume increasing by 82% compared to the previous year, even prior to the Double 11 shopping festival.