Hong Kong-based logistics startup Lalamove has apparently been working to launch its operation in Bangladesh, online activities of the company show. The company has been hiring actively for several positions including a managing director in Bangladesh.
Dhaka's logistics scene has been getting a lot of attention from multinational players of late. Lalamove is the second multinational logistics startup to enter Bangladesh in 2022. Early this year Indian logistics startup Delhivery launched in Bangladesh. Previously, another Indian logistics company Ecom Express invested $12 million in Bangladeshi logistics startup Paperly.
Lalamove was founded in Hong Kong in 2013 by Shing Chow Shing-yuk. The company was initially named Easyvan and later rebranded to Lalamove. It uses an uber-like model for delivery and describes itself as “an on-demand delivery app that matches drivers to customers.” Also known as Huolala in China, the company essentially provides van-hailing and courier services to both individuals and businesses.
The company says it operates in 30 cities across 9 markets and has over 8 million users and more than 700,000 delivery drivers. Lalamove launched in India in 2018 but it got banned in 2020 by the Indian government during the series of Chinese app bans in India.
Lalamove has raised a total of $2.5B in funding over 9 rounds. In its latest round of funding on 20 January 2021, the company reportedly raised $1.5 billion at a post-money valuation of $10 billion. Lalamove was one of the first startups in Hong Kong to hit the $1 billion unicorn valuation.
Logistics is one of the fastest-growing verticals in Bangladesh. The fast growth of ecommerce has created new opportunities in the sector. Several local logistics players have raised meaningful capital over the past two years.
Most recently, Paperfly, one of the leading players in the vertical, raised $12 million in Series B funding from Indian Ecom Express. Other notable local players in the vertical include ShopUp’s REDx, eCourier, Pathao Courier, etc.
Competition has already been growing in the vertical with companies raising new investments. Lalamove entering the Bangladesh market is likely to intensify the competition.