China-based trucking services provider Huochebang has raised about $115m in funding from investors including internet company Tencent at a $1bn valuation, Bloomberg reported yesterday.
International Finance Corporation (IFC), the World Bank’s private investment arm, co-led the round with investment fund All-Stars Investment, while Genesis Capital and DCM Ventures also participated. Reports last month suggested IFC would invest up to $20m in the company.
Huochebang operates an online service that connects truck drivers with commodities that need to be transported. It also acts as a platform for vehicle sales and auctions.
The company has roughly 2.3 million trucks signed up to its network and handles up to 100,000 orders and $120m of shipping fees each day. It generates income by selling toll cards to drivers and getting part of the fee when they top up the cards.
Tencent investment manager Li Zhaohui told Bloomberg the firm would help Huochebang strengthen its computing and big data abilities, saying: “As one of the earliest investors, Tencent is optimistic about the prospects of integrating the logistics industry with the internet.”
Tencent led a series A+ of undisclosed size for the company in August 2015 that included Hillhouse Capital and DCM, after Zhongding Capital had led its May 2015 series A round. Investment firm Genesis Capital subsequently led a $35m round in April this year.