Full Truck Alliance raises USD 1 billion for a valuation of USD 9 billion
Oct 23, 2018 (China Knowledge) - Full Truck Alliance Group has almost finalized a USD 1 billion fund injection into the company which will kickstart its foray into autonomous driving technology. The new funds will come from existing investors Softbank Group and Tencent Holdings and will bring its valuation up more than 40% to USD 9 billion. The company had initially targeted to raise the USD 1 billion at a USD 10 billion valuation.
Full Truck Alliance came into being from the merger of Huochebang and Yunmanman, and is looking to connect to millions of independent truckers in China’s fragmented long-haul delivery market. This market is estimated to have a market value of USD 720 billion.
The company now hopes to venture into autonomous driving technology and has invested into Plus.AI, a Silicon Valley based driverless truck startup. Plus.AI is backed by Sequoia Capital and is valued at nearly USD 1 billion. Long-haul trucking is one of the avenues where autonomous driving can be implemented due to its long-hours of cruising in relatively simple environments such as on highways.
Full Truck Alliance is expecting to bring in USD 1.9 billion in revenues this year and is also hoping for a five-fold growth in sales next year. The company generates its revenues from membership fees paid by customers who use its services for trucking and taking a cut of the trucker’s shipping fees and expenses when they use its online payment systems for gas purchases and toll-card top ups.
Currently, Full Truck Alliance has more than 1.5 million paying customers and 5.2 million truck members who use its platform for free. The company issued 1.55 million toll cards in August and processes USD 18.7 million worth of top ups daily, together with USD 144 million worth of gas purchases every month on its system.
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