Chinese van-hiring firm Lalamove shows intention to develop electric trucks in IPO prospectus

Beijing (Gasgoo)- Lalamove, the Chinese same-day delivery and courier service provider and van hire platform, has submitted its prospectus to the Hong Kong Stock Exchange for an initial public offering under the name "Lalatech". 

The prospectus notably addressed Lalamove's first-ever response to rumors of car production.

Photo credit: Lalamove

According to the prospectus, Lalamove achieved revenues of $529 million, $845 million, and $1.036 billion in 2020, 2021, and 2022, respectively, with an annual compound growth rate of 39.9%. In 2022, Lalamove also achieved a turnaround in profit, reporting an adjusted annual net profit of $53 million.

The proceeds from the IPO will be primarily used to expand its services on the Chinese mainland, accelerate global business expansion, invest in the R&D for sustained development and enhancement of technological infrastructure, as well as for operational capital and general corporate purposes, according to the prospectus.

Lalamove is also actively tapping into new business opportunities through its experience on existing car rental and sales services, such as the R&D of electric commercial vehicles. The company has already started recruiting automotive product experts, among other positions.

While Lalamove intends to enter the relatively less competitive commercial vehicle market, it has made clear that it aims to utilize advanced technologies in areas such as intelligent driving and smart cockpits, in order to seek further growth in the new energy vehicle market.