China-based trucking services marketplace Manbang Group has raised $1.9bn in a round featuring internet company Tencent and subsidiaries of internet technology group Alphabet and telecommunications firm SoftBank, Bloomberg reported today.
The round, which valued the company at $6.5bn according to people familiar with the matter, included China Reform Fund, GSR Ventures, Ward Ferry and Sequoia Capital. Alphabet’s investment came through its CapitalG unit while SoftBank took part through its Vision Fund.
Formerly known as Full Truck Alliance Group, Manbang runs an online platform where those looking to ship goods can link up with truckers with surplus space in their vehicles. It was formed by the November 2017 merger of rivals Huochebang and Yunmanman.
The company’s platform uses artificial intelligence to help forge connections based on routes and space. It has signed some 5.2 million trunk line trucks up to its network, and it will use the funding to expand into new markets as well as new verticals.
The round is the first to be closed by the company since the merger, with Huochebang having raised more than $260m and Yunmanman at least $275m at the time of the transaction.
Huochebang received an undisclosed sum in a Tencent-led series A+ round in 2015, and internet group Baidu’s Baidu Capital unit led a $156m series B-2 round in May 2017 that included All-Stars Investment, Genesis Capital, DCM Ventures, International Finance Corporation and Zhongding Capital
Yunmanman’s pre-merger investors included Lightspeed Venture Partners, Sequoia Capital China, Yunfeng Capital and Tiger Management.
The Wall Street Journal had earlier reported the size of the deal, the involvement of CapitalG and Vision Fund, and a valuation north of $6bn. It had previously reported in March 2018 that the company was seeking $500m to $1bn at a $5bn+ valuation.
– Photo courtesy of Manbang Group.