Baidu Capital, a subsidiary of the Baidu search engine, is leading the fundraising efforts for Truck Alliance which is looking to raise approximately $156 million. A deal could be reached this week. Truck Alliance operates like Uber but instead of passengers offers transport services for physical goods.
The latest fundraising effort by the trucking service comes less than six months after a similar effort last year in December which sought to raise $115 million and which placed the valuation of Huochebang at approximately $1 billion. According to sources both of these fundraising efforts are part of a B funding round that is currently underway. A third tranche is also being planned.
Other Chinese firms that have invested in Huochebang include Tencent Holdings. The Hong Kong-based All-Stars Investments is also an investing in the truck-hailing service.
Trillion-dollar logistics sector
In the Chinese market alone, Huochebang is in competition with 200 similar services as they seek to improve the efficiency of the country’s trucking system that is widely considered inefficient. Over 80% of the goods in China are transported via the road network and this takes up the lion’s share of the $1.6 trillion Chinese logistics sector. Some of the inefficiencies have to […]