GoGoVan raises $342m in fresh funding

GoGoVan founders (from left) Nick Tang, Reeve Kwan and Steven Lam. The US$250 million (S$342 million) raised is the Hong Kong-based start-up's largest funding to date, having raised only US$26.5 million in total since its set-up in 2013.
GoGoVan founders (from left) Nick Tang, Reeve Kwan and Steven Lam. The US$250 million (S$342 million) raised is the Hong Kong-based start-up's largest funding to date, having raised only US$26.5 million in total since its set-up in 2013.PHOTO: SOUTH CHINA MORNING POST

Sum will be used to grow service offerings and new markets

GoGoVan, an on-demand delivery van service backed by Singapore's Centurion Private Equity and Singapore Press Holdings, has raised US$250 million (S$342 million) in new funding.

The sum represents the "first phase of its new round of funding", the start-up said yesterday.

GoGoVan chief executive and co-founder Steven Lam said the company could be raising funds for a second phase of this financing round, given strong interest from other investors.

"The timing of the second phase will depend on the momentum of the investors. But we're in no rush," he added.

Asked if the start-up has plans for an initial public offering (IPO) in the near term, he said an IPO is "always an option".

The US$250 million was led by InnoVision Capital, a San Francisco-based venture capital firm, and included other investors such as Alibaba's logistics arm Cainiao, Russia-China Investment Fund, Hongrun Capital, Qianhai Fund of Funds, and 58 Daojia Group.

This is GoGoVan's largest funding to date, having raised only US$26.5 million in total since its set-up in 2013.

The US$250 million was led by InnoVision Capital, a San Francisco-based venture capital firm, and included other investors such as Alibaba's logistics arm Cainiao, Russia-China Investment Fund, Hongrun Capital, Qianhai Fund of Funds, and 58 Daojia Group.

The Hong Kong-based start-up last raised funding in May 2016, a Series C round led by Hong Kong private equity firm New Horizon Capital. The amount raised then was undisclosed but The Business Times reported it to be in the eight-digit range.

"We will be using the new funds to expand our service offerings and grow new markets," Mr Lam said yesterday. "In the next few months, we will offer a door-to-door service to fulfil demand in the small item segment."

The latter refers to a courier service that allows customers to request a GoGoVan delivery partner to pick up an item from Point A and deliver it to Point B, he said.

"The person need not be using a van to deliver the item. He could use a motorcycle or bicycle, or even take the bus or train."

GoGoVan will first roll out the door-to-door service in Hong Kong, and then Singapore later this year.

In August last year, GoGoVan merged with 58 Suyun, said to be one of China's largest intra-city logistics platforms.

The merger increased GoGoVan's presence to more than 300 cities, including Hong Kong, Singapore and cities in South Korea, India, China and Taiwan.

Anyone looking to move anything from small parcels to bulky boxes can use the GoGoVan mobile logistics app to book delivery vans at any time and anywhere.

Other last-mile delivery players in Singapore include Hong Kong-based Lalamove and Singapore's Ninja Van.

A version of this article appeared in the print edition of The Straits Times on July 14, 2018, with the headline 'GoGoVan raises $342m in fresh funding'. Print Edition | Subscribe