58 Suyun, the freight business of 58 Home, the largest online marketplace in China serving local merchants and consumers, and GOGOVAN, the leading intra-city logistics and freight online in Southeast Asia, announced a merger on August 28, creating the largest online platform in the intra-city logistics and freight business in Asia.

Under the agreement, 58 Home will hold the majority stake in the combined company, which was not disclosed. After the merger, the combined entity will continue to be branded as 58 Suyun in China and GOGOVAN outside of China. Xiaohua Chen, the founder and CEO of 58 Home, will serve as chairman, while Steven Lam, founder and CEO of GOGOVAN will take the role of CEO.

The merger represents the largest M&A transaction between start-ups in China and Hong Kong. It also changes the landscape of the trillion dollar intra-city logistics market by creating the Asian market leader.

The combined company will be the only online platform in Asia that be able to provide full on-demand logistics and freight services to both corporate and individual customers. It will also serve as the market leader in multiple markets, including China, Hong Kong, Taiwan, Singapore, South Korea and India.

Chen says the combined company will have the ability to expand in both China and Southeast Asia, as well as provide more tailored and well-rounded services to customers. The merger also lays the foundation for the combined company to become the global leader in intra-city freight services.

Lam adds the combined entity will leverage on 58 Suyun’s existing brand, large users’ base and online traffic for a quick expansion to 300 cities in China.

58 Suyun was launched by 58 Home in September 2014 to focus on intra-city logistics and freight business. It has developed a close-loop of O2O services that enables order placement based on customer location, distributing orders to truck drivers, driver pick-up within 10 minutes, actual delivery, online payment and review by customers. At present, 58 Suyun’s business has covered more than 100 cities in China with over one million registered drivers, demonstrating its dominating market position in the industry.

Founded in July 2013, the Hong Kong-headquartered GOGOVAN expanded its operations to Taiwan and Singapore in 2014 and entered into China and South Korea in 2015. To date, it has become Asia’s leading online logistics and freight platform with more than 180,000 registered drivers in 14 cities across six Asian countries or districts and nearly 30 million orders cumulatively. It also owns a large number of enterprise clients.

China Renaissance acted as the exclusive financial adviser to both 68 Home and GOGOVAN in the transaction.