On Thursday, GoGoVan, a Hong Kong based logistics startup secured $10 million in Series B-plus round of funding led by social media firm RenRen and Hu Zemin, x-CEO of Android app store 91 Wireless.
Launched in 2013, GoGoVan is an on-demand cargo transportation service for cities that uses an Uber-style valet app to request for vans and trucks. The service can be availed to move furniture to new apartment in another area or to deliver weekly needs for a store to maintain stock levels. The startup aims to be a one-size fits all solution. The app connects users with more than 70,000 registered vehicles operating across Hong Kong, Singapore, South Korea, China and Taiwan and is working on to launch in Australia soon.
GoGoVan handles more than 15000 deliveries per day and has more than 78,000 drivers working for them. According to Chi Tsang, head of Asia Internet Research for HSBC Holdings Plz, “Growing fast is crucial to the success of logistics companies. Once you have all these drivers and are delivering packages and all the merchants are using you, it is very tough to dislodge.” He also added, “That’s why Uber is one of the fastest growing startups. It is all about the scale game.”
“With the latest funding, GoGoVan plans to further enhance and broaden its platform offerings and to expand its global presence,” the company said in a statement. Previously, the company raised $10 million in Series B round of funding from Chinese social network RenRen in November last year and through Series A funding in August the company raised $6.5 million which was led by Centurion Investment Management. “Many other potential investors have also actively reached out to GoGoVan and expressed great interest in participating in future rounds of funding,” the company added.
Started by Nick Tang, Reeve Kwan and Steven Lam, the GoGoVan is one among the leading startups in the region’s logistics arena. It has teamed up with Kerry Logistics Network Ltd., FedEx Corp and DHL Worldwide Express to provide vans in various other locations. It’s biggest competitor in the region is Lalamove, formerly known as EasyVan and Uber’s own logistics service called UberCargo.