Truck Al­liance raises $115m in fund­ing

China Daily (Hong Kong) - - BUSINESS - By JING SHUIYU jing­shuiyu@chi­nadaily.com.cn

China’s Uber-type ser­vice for trucks Guiyang Huochebang Tech­nol­ogy Co Ltd, also known as Truck Al­liance, said on Thurs­day that it had raised $115 mil­lion in se­ries B-1 fund­ing, and ex­pects to com­plete ad­di­tional fi­nanc­ing soon.

In­ter­na­tional Fi­nance Corp and All-Stars In­vest­ment Ltd led the fi­nanc­ing, and sev­eral new heavy­weight in­sti­tu­tions and ex­ist­ing in­vestors also jumped on the band­wagon this time, ac­cord­ing to the com­pany, which is based in Guizhou prov­ince.

This was the largest ever round of fund­ing so far among on­line long-haul lo­gis­tics plat­form in­vest­ments.

CEO Dai Wen­jian said: “The fund­ing will be used to en­hance the plat­form of Truck Al­liance and ex­pand our truck ser­vice busi­ness.”

“We will im­prove our al­go­rithm to build up a more ac­cu­rate match­ing sys­tem between truck­ers and ship­pers. We will ex­pand the use of truck elec­tronic toll col­lec­tion cards to more clients.”

So far, the com­pany works with 2.3 mil­lion truck­ers and 350,000 ship­pers, and has about 1,000 ser­vice cen­ters in more than 360 cities na­tion­wide. It han­dles as much as 100,000 orders daily and pro­cesses up to $120 mil­lion in ship­ping fees ev­ery day.

Mou Xiaomin, se­nior in­vest­ment of­fi­cer at In­ter­na­tional Fi­nance Corp, said: In­side “Lo­gis­tics is a highly com­plex in­dus­try. We be­lieve that the on­line plat­form of Truck Al­liance can help make the in­dus­try more ef­fi­cient and en­vi­ron­men­tally friendly by sub­stan­tially re­duc­ing a truck’s empty miles and the wait­ing time between loads.”

Li Zhao­hui, in­vest­ment man­ager at Ten­cent Hold­ings Ltd, the largest share­holder in Truck Al­liance, said: “As one of the early-stage in­vestors, Ten­cent at­taches great im­por­tance to the in­te­gra­tion of the lo­gis­tics in­dus­try and the mo­bile in­ter­net.”

In the truck­ing busi­ness, mu­tual trust between driv­ers and ship­pers is re­garded as one of the key fac­tors in driv­ing its healthy de­vel­op­ment.

To cope with the chal­lenge, Truck Al­liance signed an agree­ment with the Na­tional De­vel­op­ment and Re­form Com­mis­sion on build­ing up a credit sys­tem in road freight trans­port in late Novem­ber.

Un­der the agree­ment, Truck Al­liance is ex­pected to keep track of users’ on­line trans­ac­tion in­for­ma­tion.

num­ber of ser­vice cen­ters startup Truck Al­liance has across the coun­try See more

Bloomberg con­trib­uted to this story.

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