GoGoVan, a China-based logistics company backed by e-commerce group Alibaba, and 58 Suyun, the freight subsidiary of online classifieds company 58 Home, have agreed to merge, the South China Morning Post reported on Monday.
The combined entity would reportedly be valued at more than $1bn, creating Hong Kong’s first unicorn. The deal will be conducted in an all-stock transaction, with the new business being controlled by 58 Suyun’s shareholders, according to the Financial Times.
The business will be known as 58 Suyun in China and as GoGoVan internationally.
Founded in 2013, GoGoVan operates a mobile app that allows users to book anything from a van to a large truck to transport bulky items such as furniture. The company has grown to 180,000 registered drivers throughout 14 cities across six markets in Asia.
In May 2016, GoGoVan raised a series C round of undisclosed size that featured Alibaba’s Hong Kong Entrepreneurs Fund, media company Singapore Press Holdings, Hotung Investment Holdings and unnamed, existing backers. New Horizon Capital led that round.
GoGoVan previously closed a $20m series B round in 2015 that consistent of two equal tranches. Social media company Renren provided the initial $10m in November 2014, followed by an extension led by Hu Zemin that included Renren’s chief executive Yizhou Chen.
Centurion Investment Management had led a $6.5m series A round in August 2014.
58 Suyun was spun out of online classifieds platform 58 Home, which is itself a unit of US-listed classifieds website 58.com. 58 Suyun operates its logistics services platform across 100 cities in China.
The newly combined group is reportedly seeking an initial public offering in Hong Kong in 2018.