Huochebang, a China-based logistics services provider backed by internet companies Baidu and Tencent, has agreed to merge with its local peer Yunmanman, Bloomberg reported today.
The combined business is set to be worth more than $2bn and would end an expensive battle between the two companies to dominate the Chinese trucking market. Neither company has officially commented on the deal yet.
Founded in 2011, Huochebang operates an online logistics platform that links lorry drivers with clients. It also allows drivers to sell their vehicles or buy used trucks through auctions.
Huochebang most recently raised $56m in a series B-3 round in August 2017 led by investment firm All-Stars Investment, with participation from undisclosed backers.
In May 2017, Huochebang secured $156m in a series B-2 round co-led by Baidu’s corporate venturing unit Baidu Capital and All-Stars, after Tencent, Genesis Capital and DCM Ventures had supplied $115m in series B funding in December 2016 co-led by All-Stars.
The initial series B round was co-led by International Finance Corporation, the private sector-focused investment arm of multilateral financial institution World Bank.
In April 2016, Genesis Capital led a $35m funding round, after Tencent had led a series A+ round of undisclosed size in August 2015. Zhongding Capital previously led Huochebang’s series A round, also of undisclosed amount, in May 2015.
Yunmanman, founded in 2014, most recently raised $120m in a series D-3 round in November 2017 led by hedge fund Tiger Management. It previously disclosed $110m in series D funding and $50m in series C2 funding, though it has not named any investors for either round.
Lightspeed Venture Partners, Sequoia Capital took part in a series C round led by Yunfeng Capital in August 2016, the size of which was undisclosed. Sequoia Capital injected an undisclosed sum in series B funding in 2015, after Lightspeed had supplied $5m in series A capital in 2014.