Logistics Platform 58 Suyun Finishes First Funding Round of $250 Million
The logistics platform 58 Suyun announced on July 12 the completion of its first round of fundraising of $250 million, led by InnoVision Capital.
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Alibaba’s logistic arm Cainiao Network, along with Russia-China Investment Fund, Qianhai Fund of Funds and 58 Home, also participated in the round, according to 58 Suyun’s announcement.
58 Suyun is a spin-off of 58 Home, which is part of the U.S.-listed 58.com – China’s largest online marketplace and multi-category local services provider backed by Tencent. 58 Suyun currently bases its business in the same city cargo express industry. By the end of June 2018, 58 Suyun had a business scope of close to 8 million users, spread in 339 cities and 6 countries and regions.
58 Suyun is currently expanding its businesses in the Chinese domestic market and has already achieved a certain amount of market share. Since last year, 58 Suyun has quickly penetrated most of China’s prefecture-level cities and also expanded its operations into Southeast Asia through a merger with the logistics platform GOGOVAN.
Launched in September 2014, 58 Suyun was focusing on intra-city logistics and freight business. It merged with the Hong Kong-based logistics platform GOGOVAN last August. Chen Xiaohua, the founder and chairman of 58 Suyun, continues to serve as the chairman of the new company after the merger.
Chen said that after the completion of this round, 58 Suyun will increase capital investments and increase competition barriers according to an established strategy.
This is the first round of fundraising for 58 Suyun after it became independent from 58 Home in 2017. After several rounds of shuffling, the current competitive landscape in the same city delivery has gradually become clear.
Alibaba‘s Cainiao Network, prior to this deal, made its first logistic investment last week of $290 million into a local logistic service provider in Hangzhou. In May, Cainiao also joined Alibaba to lead an investment of $1.38 billion into the Chinese express delivery giant, ZTO Express.