Online road transport operator Shanghai Tiandihui eyes mainland IPO

Shanghai Tiandihui Supply Chain Management, China’s largest online road transport operator, is eyeing an initial public offering after closing the latest round of financing from a clutch of yuan-denominated investment funds.

Xu Shuibo, founder and chief executive of Tiandihui, said the technology start-up would turn profitable in 2018 after four years of operations. That would be a big step towards a mainland listing as the domestic stock exchanges begin scrambling for home-grown unicorns.

“It’s taken time for the mainland market to understand our businesses,” he said. “But the key lies in whether the IPO applicant has convincing operating data. We are making efforts to show investors our growth potential and solid performance.”

Tiandihui raised 500 million yuan (US$79.1 million) in a third round of financing led by CICC Jiacheng Investment Management, a subsidiary of investment bank China International Capital Corp.

The company, whose online platform matches lorries with cargo in more than 50 cities across the mainland, would not disclose its valuation after the financing.

Based on annual revenue of 5 billion yuan in 2017, its valuation could have reached US$1 billion, the threshold for an unlisted technology firm to become a unicorn.