GoGoVan to become Hong Kong’s first US$1 billion start-up after merger with 58 Suyun
Deal will also create Asia’s largest online platform for intra-city logistics and freight, and sets stage for expansion into mainland cities
Hong Kong logistics company GoGoVan has agreed to a merger with 58 Suyun, the freight business of mainland Chinese online classifieds giant 58 Home, creating the city’s first start-up worth more than US$1 billion.
The merger would also create Asia’s largest online platform in the intra-city logistics and freight business, according to China Renaissance Group, which served as exclusive financial adviser to the deal.
Terms of the deal were not disclosed ahead of a joint press conference scheduled on Tuesday by GoGoVan and 58 Home’s senior management.
A market source, however, said the transaction valued the merged company at more than US$1 billion, making it the first “unicorn” in Hong Kong.
“If that valuation proves accurate, then this deal would serve as a much-needed source of inspiration for Hong Kong’s start-up scene,” said Paul Haswell, a partner at international law firm Pinsent Masons.
Founded in July 2013, GoGoVan has established a sprawling online logistics and freight operation in 14 cities across six Asian markets. It counts more than 180,000 registered drivers on its mobile application, enabling businesses and individuals to hire a driver with anything from a light-goods vehicle to a 16-tonne truck within seconds.
In May last year, GoGoVan was among the first batch of start-ups to get funding from e-commerce powerhouse Alibaba Group Holding’s Hong Kong Entrepreneurs Fund. Alibaba owns the South China Morning Post.