The Chinese Uber for trucks Manbang announced Tuesday that it has raised $1.7 billion in its latest funding round, two years after it hauled in $1.9 billion from investors including SoftBank Group and Alphabet Inc.’s venture capital fund CapitalG.
The news came fresh off a Wall Street Journal report two weeks ago that Manbang was seeking $1 billion ahead of an initial public offering next year. The company declined to comment on the matter, though its CEO Zhang Hui said in May 2019 that the firm was “not in a rush” to go public.
Manbang said it achieved profitability this year. Its valuation was reportedly on course to reach $10 billion in 2018.
The company, which runs an app matching truck drivers and merchants transporting cargo and provides financial services to truckers, was formed from a merger between rivals Yunmanman and Huochebang in 2017. It was a time when China’s “sharing economy” craze began to see consolidation and shakeup.
The latest financing again attracted high-profile backers, including returning investors SoftBank Vision Fund and Sequoia Capital China, Permira and Fidelity, a consortium that co-led the round. Other participants were Hillhouse Capital, GGV Capital, Lightspeed China Partners, Tencent, Jack Ma’s YF Capital and more.
The company has other Alibaba ties. Its CEO Zhang, who founded Yunmanman, hailed from Alibaba’s famed B2B department where Manbang chairman Wang Gang also worked before he went on to fund ride-hailing giant Didi’s angel round.
Manbang claims its platform has more than 10 million verified drivers and 5 million cargo owners. The latest funding will allow it to further invest in research and development, upgrade its matching system and expand its service capacity to functions like door-to-door transportation.
Sequoia is quite bullish about truck-hailing as it made its sixth investment in Manbang. For Permira, a European private equity fund, the Manbang investment marked the China debut of its Growth Opportunities Fund.