China Digest: Logistics startup Pickupp closes Series A; Convertlab raises $15.2m

Hong Kong-based on-demand delivery startup Pickupp has closed a Series A round of financing, while Convertlab, a provider of integrated marketing cloud solutions, has raised over 100 million yuan ($15.2 million) in a Series B round of financing.

Hong Kong-based logitstics startup Pickupp closes Series A round

Pickupp, a Hong Kong-based on-demand delivery platform, has closed a Series A round of financing to fund expansion in the Asia-Pacific region and diversify its offerings to digital-first businesses, as the COVID-19 pandemic has accelerated the e-commerce development.

The Series A round was backed by Chinese dual-currency investment firm Vision+ Capital; Alibaba Entrepreneurs Fund, a not-for-profit initiative launched by Alibaba Group; and the Hong Kong government-owned Cyberport Macro Fund, a co-investment fund that invests up to HK$200 million ($25.8 million) in each transaction.

Swire Properties New Ventures, a $50-million venture fund created by Hong Kong-based Swire Properties; and startup accelerator SparkLabs Taipei also participated, , according to a recent statement.

Pickupp was founded in December 2016 and started providing customised last-mile delivery services of bulk and ad-hoc deliveries in mid-2017. The firm operates as an on-demand platform that connects over 10,000 business mainly in the retail and e-commerce sectors with a fleet of independent delivery agents including walkers, scooters, vans, and trucks to offer same-day and next-day deliveries.

In Hong Kong, the firm’s four-hour delivery solutions cover most parts of the Hong Kong Island and Kowloon regions, as well as urban areas of New Territories, among others.

The new financing will allow Pickupp to diversify its product portfolio and offerings, help retailers optimize their business strategies, and better understand their customer needs.

“Pickupp is redefining logistics with a tech and data-driven approach. Our technology, agility, transparency and innovation enable our customers to effectively scale and thrive,” said Crystal Pang, CEO of Pickupp, in the statement.

Pickupp now has operations in Hong Kong, Singapore, Malaysia, and Taiwan. The startup plans to continue to diversify its product offerings while extending footprint with a target to serve 10 major markets across APAC within the next five years.

Marketing cloud solutions provider Convertlab raises over $15.2m

Convertlab, a Chinese provider of integrated marketing cloud solutions, has raised over 100 million yuan ($15.2 million) in a Series B round of financing, according to a statement on Monday.

The Series B round was led by Tencent Eco-Industrial Investment, an investment vehicle created by Tencent to help build its cloud ecosystem; and China-focused early-stage venture capital firm Lightspeed China Partners. Shanghai-based investment firm Before Capital, an existing investor of Convertlab, re-upped in the deal.

Founded in 2015, Convertlab has developed what it said to be China’s first all-in-one marketing cloud product, DM Hub, a collection of product offerings that works alike Adobe Inc’s integrated online marketing & Web analytics product suite, Adobe Experience Cloud.

The firm has served over 300 enterprises across industries including retail, consumer, finance, automobile, and real estate. Some of its clients include Japanese casual wear brand Uniqlo, Chinese state-backed Shanghai Pudong Development Bank (SPD Bank); Foton Motor, a BAIC Group subsidiary that produces trucks, buses, SUVs and other vehicles; and BMW Group’s digital solutions arm LingYue.

In the statement, Convertlab’s co-founder and CEO Gao Peng said that China’s marketing cloud industry is expected to entre into “a stage of rapid development” in 2021, as the adoption of such services among domestic enterprises has increased siginificantly.

“The spring of the market seems to be coming,” said Gao. He added that Convertlab this year has launched a new marketing cloud product, Hui Ju, a consumer acquisition solution that targets B2B enterprises. The firm plans to introduce a brand new product matrix in 2021.

Proceeds of the round will be used to recruit industry talents and increase investments in technology development & production innovations, in an effort to enhance the firm’s ecosystem and commercialization capabilities.

In May 2019, the firm had entred into an agreement to secure an investment from Puxin Capital, a private equity fund management unit of SPD Bank. Financial terms of the deal were not disclosed.

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