Intra-city freight platform Kuaigou Dache, known as GoGoX overseas, filed a prospectus for a planned listing on the HKEx main board, according to HKEx filings. CICC, UBS, BOCOM and ABC International are the joint sponsors.
Kuaigou Dache, formerly known as 58 Suyun, merged with GoGoVan Cayman, a Hong Kong-based intra-city logistics service platform, in 2017, and officially changed its name in August 2018. Its business includes logistics platform services, enterprise services and value-added services, providing users with short-distance goods delivery and transaction services such as hauling and moving.
As of April 30, 2021, Kuaigou Dache has about 24.8 million registered users and 4.5 million registered drivers. At present, it has established cooperation with nearly 100,000 enterprises such as Cainiao, SF Express, JD.COM, Missfresh, and Meituan.
Up to now, Kuaigou Dache has completed five rounds of financing, with investors including 58.com, Tencent, Cainiao and Sequoia Capital China. Previously, it is estimated that the valuation of Kuaigou Dache is about $2 billion.
The prospectus cited third-party statistics that the size of the intra-city logistics market in Chinese mainland increased to 1,230.5 billion yuan ($190.256 billion) in 2020 and is expected to continue to increase to 2,121.3 billion yuan by 2025. Based on total transactions in 2020, the five largest market players account for approximately 67.5% of the total market share, with Kuaigou Dache ranking second with a 5.5% market share. The company operates in more than 340 cities in Asia.
This year, intra-city freight and express transportation sectors have seen massive investment and desire to publicly list while supervision of the industry continues to tighten. Southern Metropolis Daily found, according to public reports, that at least nine freight companies have planned to go public or have already started the listing process.
On June 22nd, Full Truck Alliance, known as “the first stock of the digital freight platform”, officially listed in the US. In the same month, Kuaigou Dache completed two rounds of financing totaling $88 million.