China-based on-demand logistics and delivery firm Lalamove is considering raising about US$500 million in new funds at a valuation of roughly US$10 billion, according to people familiar with the matter.
The company is gauging interest from potential investors, one of the people said, asking not to be identified because the information is private.
The start-up had been weighing a US$1 billion Hong Kong initial public offering after preparations for a US debut stalled, Bloomberg News reported last year. The listing could proceed later than anticipated on account of market volatility, the people said.
Discussions are ongoing and the fundraising target and valuation of the company could still change, the people said. A representative for Lalamove couldn’t immediately comment on requests made outside normal business hours.
IPOs have gotten off to a rough start in the Asian financial hub. First-time share sales in Hong Kong have raised just US$1.9 billion this year, down nearly 90 percent from the same period in 2021, according to data compiled by Bloomberg.
Founded in 2013 by Stanford graduate and former professional poker player Chow Shing-yuk, Lalamove provides van-hailing and courier services on demand in markets across Asia and Latin America. The startup matches more than 8 million users with a pool of over 15 million drivers, according to a press release.
In 2020, the company raised US$515 million from investors including Sequoia Capital China, Hillhouse Capital and Shunwei Capital.