At our TechCrunch China adventure in June we discussed the vivid future that Hong Kong’s startup scene has, despite some huge challenges. This week the country handed a exquisite milestone because it received its first $ 1 billion valued startup, superior known as a unicorn.
The business in query is GoGoVan, a logistics on-demand provider that connects van drivers and valued clientele for transporting items. GoGoVan and others love it, together with fellow Hong Kong company Lalamove, are often labeled as ‘Uber for beginning,’ but most shoppers are from the business world.
GoGoVan has handed the $ 1 billion mark exactly since it is looking to go past the B2B market. It has merged with China-based fifty eight Suyun, a fellow logistics on-demand platform that’s concentrated on serving consumers.
past the method of marrying a company-focused provider with a consumer-focused offering, the deal is also complementary in terms of geographies. fifty eight Suyun — which is owned by using online classifieds enormous fifty eight.com — is existing in over one hundred cities in China with 1.2 million registered drivers, while GoGoVan is present in eight cities in China in addition to China, Taiwan, Singapore, Korea and India.
The merged entity — which could be known as GoGoVan — plans to integrate the two groups collectively to offer GoGoVan capabilities in 58 Suyun’s areas, and bring fifty eight Suyun’s functions outdoor of China. The newly formed company has a valuation of over $ 1 billion, its CEO Steven Lam told TechCrunch in an interview.
“This deal make best feel for each side,” Lam said. “we’ve Southeast Asia and China with a B2b focal point, and that’s completely distinctive from fifty eight, which is within the client market. we now have a management position in China and in some nations in Southeast Asia — we are able to do much more in Southeast Asia and past.”
GoGoVan CEO Steven Lam and fifty eight home CEO Xiaohua Chen at an adventure saying the merger deal
there’s additionally a typical investor. Alibaba invested in GoGoVan via its entrepreneurship fund, and it backed fifty eight.com’s 58 home subsidiary, which operates fifty eight Suyun, in a $ 300 million round in 2015. GoGoVan, which turned into begun in 2014 by means of five Hong Kong founders, has raised over $ 26 million from buyers despite the fact its most recent series C turned into undisclosed.
Lam pointed out that publish deal the company is asking to carry upwards of $ 200 million for enlargement into two or three new markets subsequent year. In 2019, he wants to flow beyond Asia, in all probability into Australia and Europe, and checklist the enterprise on a public market.
“The plan is to be certain the company is able to be listed, however depends upon the market condition. If we will also be basically profitable, we may additionally even live private,” Lam explained. He added that Hong Kong, which has considered a growth in activity from tech businesses, may well be the IPO destination, but GoGoVan is open to a U.S. list, too.
GoGoVan isn’t on my own with this ambition. Lalamove is additionally beginning to discover opportunities to head public, too. It raised $ 30 million from buyers previous this year and its head of overseas suggested it’ll seem to be to hang an IPO, undoubtedly in Hong Kong, earlier than 2020.
Featured photo: GoGoVan
Fundings & Exits – TechCrunch