Cainiao and Russia-China Investment Fund both contributed to the first round closed by the delivery services marketplace since its merger with 58 Suyun last year.
China-based delivery services provider GoGoVan has raised $250m from investors including logistics services provider Cainiao and local services platform 58 Daojia, The Business Times reported today.
Venture capital firm InnoVision Capital led the round, which also featured Hongrun Capital, Qianhai Fund of Funds and the government-backed Russia-China Investment Fund. It represents the first part of an extended fundraising, the company said.
GoGoVan runs an app-based marketplace for delivery services, connecting drivers with clients that need packages delivered. It merged with 58 Suyun, a competitor spun off from 58 Daojia, in an August 2017 deal that created an entity worth about $1bn.
The company is present in Singapore, South Korea and Taiwan as well as its home country. It largely serves corporate clients using van drivers, but intends to begin expanding the service to cover smaller goods that can be delivered by car, motorcycle or public transport.
Steven Lam, co-founder and CEO of GoGoVan, told The Business Times: “We will be using the new funds to expand our service offerings and grow new markets. In the next few months, we will offer a door-to-door service to fulfil demand in the small-item segment.”
58 Suyun has not raised any external funding prior to the merger, but GoGoVan received $6.5m in a 2014 series A round led by Centurion Investment Management, before securing $20m in a series B round that closed in 2015 with backing from social media operator Renren.
Private equity fund New Horizon Capital led a series C round of undisclosed size for GoGoVan in 2016 that included Cainiao’s owner, e-commerce group Alibaba, media company Singapore Press Holdings, Hotung Investment Holdings and unnamed existing investors.