Telecommunications and internet group SoftBank’s Vision Fund has co-led a $1.7bn funding round for Manbang Group, the China-based trucking services provider also known as Full Truck Alliance, Reuters reported today.
The round was co-led with investment and financial services group Fidelity, Permira’s Growth Opportunities Fund and Sequoia Capital China. It included internet group Tencent, Hillhouse Capital, GGV Capital, Lightspeed China Partners and YF Capital and valued the company at almost $12bn.
Manbang operates an app-based service that uses artificial intelligence to match drivers with space in their trucks to customers who require cargo to be transported, taking a cut of the fee and plotting out optimal routes for drivers.
The company, formed by the merger of peers Huochebang and Yunmanman in 2017, said today it has reached profitability and will allocate the capital to research and development and the expansion of its transportation capacity as it seeks to add features like last-mile delivery.
Tencent and Vision Fund had joined internet technology conglomerate Alphabet’s CapitalG subsidiary as well as Sequoia China, China Reform Fund, GSR Ventures and Ward Ferry to provide $1.9bn for Manbang in 2018 at a $6.5bn valuation.
Huochebang had secured more than $260m in funding from investors including Tencent, Baidu Capital – a subsidiary of internet company Baidu – All-Stars Investment, Genesis Capital, DCM Ventures, International Finance Corporation and Zhongding Capital pre-merger.
Yunmanman on the other hand had raised at least $275m from backers that included Sequoia China, Lightspeed Venture Partners, YF Capital and Tiger Management.
