Manbang, the China-based trucking services platform backed by internet group Tencent, internet and technology conglomerate Alphabet and telecommunications firm SoftBank, is looking to raise $1bn, the Wall Street Journal reported yesterday.
The company is seeking to raise the cash at a $10bn valuation and is speaking to US mutual funds among other potential backers, people familiar with the matter told WSJ. It was reportedly valued at $6.5bn when it last secured funding, in a $1.9bn round in April this year.
Formed by the November 2017 merger of trucking services platforms Huochebang and Yunmanman, Manbang operates an online platform that links truckers with clients that need freight delivered, using its analytics technology to optimise routes and loads for each truck.
The company has signed up about 5.2 million truck drivers and has accumulated some 1.25 million customers. In addition to its core business, it also offers refuelling, automotive insurance and financing services for its users.
Manbang intends to use the cash to continue growing its business in China, but will also put aside money for strategic acquisitions, a source told WSJ.
Tencent, SoftBank’s Vision Fund and Alphabet’s growth equity subsidiary, CapitalG, all took part in the April round, alongside China Reform Fund, GSR Ventures, Ward Ferry and Sequoia Capital.
Huochebang had secured more than $260m from Tencent and Baidu Capital, part of internet group Baidu, as well as All-Stars Investment, Genesis Capital, DCM Ventures, International Finance Corporation and Zhongding Capital prior to the merger.
Yunmanman had raised at least $275m from investors including Lightspeed Venture Partners, Sequoia Capital China, Yunfeng Capital and Tiger Management.