Lalamove, a Hong Kong-based on-demand logistics startup, has closed a $300 million Series D round as it seeks expansion across Asia. In doing so, the company has officially entered the unicorn club.
Founded in 2013 by Stanford graduate Shing Chow, Lalamove provides logistics and delivery services in a similar style to ride-hailing apps like Uber but it is primarily focused on business and corporate customers. That gives it more favorable economics and a more loyal customer base than its consumer-focused peers, who face discount wars to woo fickle consumers.
This new round is split into two, Lalamove said, with Hillhouse Capital leading the ‘D1’ tranche and Sequoia China heading up the ‘D2’ portion. The company didn’t reveal the size of the two pieces of the round. Other investors that took part included new backers Eastern Bell Venture Capital and PV Capital and returning investors ShunWei Capital — the firm founded by Xiaomi CEO Lei Jun — Xiang He Capital and MindWorks Ventures .
The deal takes Lalamove to over $460 million raised to date, and it follows a $100 million Series C that closed in late 2017. Lalamove isn’t disclosing a valuation but Blake Larson, the company’s head of international, told TechCrunch that it has been “past unicorn mark for quite some time [but] we just don’t talk about it.” That figures given the size of the round and the fact that Lalamove was just shy of the $1 billion mark for that Series C.
The Lalamove business is anchored in China where it covers over 130 cities with a network of over two million drivers covering vans, cars and motorbikes.
Beyond China, Lalamove is present in its native Hong Kong — where Uber once briefly tried a similar service — Taiwan, Vietnam, Indonesia, Malaysia, the Philippines and Thailand, where it works with popular chat app Line. All told, it covers 11 cities outside of China and this new capital will go towards expanding that figure with additional city launches in Southeast Asia and entry to India.
“If we do this well, then we are in countries that are more than half the world’s population,” Larsen said in an interview, although he didn’t rule out the potential for Lalamove to expand beyond Asia in the future.
There are also plans to grow the business in mainland China in terms of both geography and new services. Already, Lalamove has begun to offer driver services, starting with financing packages to help drivers with vehicle purchasing, and it is developing dedicated corporate offerings, too.
Overall, the business claims to have registered 3 million drivers to date and served more than 28 million users across all cities. With its headquarters in Hong Kong, it employs some 4,000 people across its business.
Rival GoGoVan exited through a merger with China-based 58 Suyun in 2017, at a claimed valuation of $1 billion, but Lalamove has remained independent and stuck to its guns. Larson said that already it is profitable in “a significant amount” of cities and typically, he said, the blueprint is to reach profitability within two years of opening a new location.
“The focus has always been on sustainable growth and we’re very strong on the cash flow front,” the former Rocket Internet executive added.
Larson and Lalamove have been very forthcoming in their desire to go public in Hong Kong, noting so publicly as early as 2017 at a TechCrunch China event in Shenzhen. That desire is still evident — “we’re very proud to be from Hong Kong and Hong Kong would be a good place for an IPO,” Larson said this week — but still the company said that it has no particular plan on the cards, despite its consumer-focused peers Uber and Lyft lining up IPOs in the U.S. this year.
“We don’t spend maybe even five minutes a year talking about it,” Larsen told TechCrunch. “The discussion is really ‘Let’s make sure we’re IPO ready’ because sometimes there are macroeconomic conditions you can’t control.”
Clearly, investors are bullish and it is notable that Lalamove’s new round comes at a time when many Chinese companies are downsizing their staff, with the likes of Didi, Meituan and JD.com announcing cuts and refocusing strategies in recent weeks.
“[Lalamove CEO and founder] Shing is a role model for Hong Kong’s new generation of innovative entrepreneurs,” said Sequoia China founder and managing partner Neil Shen. “Raised in Hong Kong and educated at Stanford University, Shing returned and plunged himself in the entrepreneurial wave of ‘Internet Plus,’ becoming a figure of entrepreneurial success.”
Apple Q1 2022 winners & losers: iPhone up, iPad down in bumper holiday
Apple has released the earnings report for its first fiscal quarter of 2022, announcing yet another all-time record with revenue hitting $123.9 billion. The company credits a “very strong customer response” toward its latest and greatest products for the growth, noting its earnings ultimately jumped 11-percent compared to the previous year.
Apple’s most recent fiscal quarter ended on December 25, 2021, raking in growth across the services, wearables, Mac, and iPhone products lines. The iPad was the only notable exception to the records, with the overall trend hinting at a bright future despite pandemic-related disruptions.
The company hasn’t provided forward guidance since the start of the pandemic and the most recent quarterly earnings report is no exception. Despite that, Apple CEO Tim Cook did offer some insight into the company’s expectations for the next quarter in a statement to CNBC, revealing Apple expects to see “solid year-over-year revenue growth” during its March quarter.
As with many other companies in the industry, Apple has been hit hard by supply chain disruptions. Though this issue won’t disappear overnight, Cook said Apple expects these “constraints” to be less of a problem in its next quarter compared to the December quarter.
Apple introduced its iPhone 13 series in September 2021, paving the way for typically high sales over the holiday period. As of October, the company warned that supply shortages may end up hitting the iPhone and iPad lines, potentially impacting holiday sales. This reality was reflected in consumers’ struggle to find the iPhone 13 Pro, at least in their desired configurations, for weeks after its launch.
Though the December quarter ended up exceeding analysts’ expectations, the struggle isn’t quite over. Cook explained that Apple’s “biggest issue” involves supply chain constraints related to legacy nodes, a problem we’ve heard before. However, Apple’s CEO did reveal the company is “doing okay” when it comes to acquiring leading-edge chips, which refers to the powerful hardware powering many of the smart devices used in everyday life.
The constraints aside, Cook also mentioned Apple’s ongoing environmental and social efforts as part of the company’s earnings announcement, stating:
We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030, and pushing forward with our work in education and racial equity and justice.
Facebook Messenger will tell you if someone screenshots your disappearing message
Meta CEO Mark Zuckerberg announced a major new feature for Facebook Messenger, one that will significantly improve privacy on the platform: Notifications when someone screenshots your disappearing messages in a Secret Conversation secured with end-to-end encryption.
“New update for end-to-end encrypted Messenger chats so you get a notification if someone screenshots a disappearing message,” Zuckerberg wrote on January 27, 2022. “We’re also adding GIFs, stickers, and reactions to encrypted chats too.”
Facebook first introduced disappearing messages in November 2020, in both Messenger and Instagram. The move was part of a larger effort to provide additional protection across the company’s messaging platforms, with WhatsApp receiving a similar feature just weeks before.
From the very beginning, Messenger would notify users when someone took a screenshot of a disappearing message, making this latest announcement seem redundant. There’s one very important difference, however.
Facebook’s end-to-end encryption push
Facebook has been working to roll out end-to-end encryption (E2EE) across its messaging platforms. E2EE is a significant upgrade from server-side encryption and is considered the gold standard of privacy and security. In the case of server-side encryption, the service provider has the key that can be used to decrypt your data. As a result, you can never truly be sure who is accessing your data and messages.
With E2EE, however, your data is encrypted in such a way that only you and the person you’re communicating with can read your message. Not even the provider, whose service you’re using, can intercept and read your messages. Needless to say, while E2EE offers unrivaled security, it can be more difficult to add features that are commonplace in non-E2EE services.
That distinction is what makes Zuckerberg’s latest announcement different. Facebook is now providing screenshot notifications within E2EE chats, adding an additional layer of privacy and security to such messages. The addition of reactions, GIFs, and stickers to these chats, meanwhile, will make private conversations a bit more exciting. The new features are rolling out now.
Your iPhone could accept contactless payments in the future
Apple is working on a service that will let you accept payments directly through your iPhone, according to a new report from Mark Gurman at Bloomberg. Gurman’s sources say that the tech giant has been working on the feature since 2020, when it purchased Mobeewave, the Canadian startup behind new tech for smartphones that lets them accept contactless payments from credit cards.
Gurman reports that the payment system will probably rely on the iPhone’s near field communications chip (NFC). The iPhone already uses the NFC chip to process payments using Apple Pay, so it would make sense to build off of that usage with the new service.
Currently, users accepting payments via their iPhone have to rely on third-party hardware from companies like Square. With this new tech, though, businesses would be able to accept card payments by simply letting the customer tap their card against their iPhone. It’s an interesting concept, and one that could turn the world of handheld sales on its head depending on how Apple pushes it.
Apple could announce a new iPhone SE, too
While Apple hasn’t shared any real details about the plan, or indeed any official news at all, it is something to keep an eye on. Additionally, Gurman says that the tech may debut later this year, alongside some other announcements that people are expecting from Apple. Chief among these other announcements is a new iPhone SE model, as well as an iPad Air that offers 5G connectivity. Gurman says those devices are expected to debut in March or April, and we’ve already seen previous reports about a new Mac that uses Apple’s custom-built processors, too.
Apple pushing towards accepting payments directly on its devices isn’t exactly a surprise. The company has slowly been expanding its payment options in the past, with the launch of the Apple Card, as well as a push to get Apple Pay in more stores around the world. The company also launched the Apple Cash Card, which allows you to send payments directly peer-to-peer, similarly to services like PayPal or Venmo. All we need to do now is wait and see how Apple pushes this new service, and exactly what it means for current payment providers like Square.
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