VMS has successfully completed an investment in DiDi Freight (the “Company”), the China fastest growth truck hailing platform. The Series A financing of USD 1.5 billion was led by Temasek, CPE and IDG. The Company provides short distance intra-city logistics services via vans and trucks since June 2020. The Company has been operating in major cities of Yangtze River Delta area, Sichuan and Chongqing, targeting to expand into other major cities in China by the end of this year. China’s intra-city logistics service is a RMB 1.4 trillion market. However, the existing platforms cannot satisfactorily fulfil the strong demand of the market, with ample room for further online penetration by intra-city logistics online platforms given the value propositions to both users and drivers. Key value propositions to users include a) more cost effective and transparency on pricing, b) timely and better matching between the needs from goods senders and services provided by truck drivers. Key value propositions to drivers include a) a more stable and reliable source of income and b) a higher utilization rate of trucks. The Managing Director and Head of TMT and Consumer of VMS Asset Management, Vanessa Lee, denoted that China intra-city logistics market is huge, fragmented, and with lots of growth potential. The next-generation of online platforms are expected to consolidate and further disrupt the market. With the leverage and support from its parent company “DiDi Chuxing” on user acquisitions, talents, technology, platform operational capabilities, and driver management experience, the Company will further enhance the market efficiency and creates values to users and drivers.

VMS is honored to become a shareholder of DiDi Freight and looking forward to accompanying the Company to achieve its vision in the long term. VMS has been focusing on investments surrounding the development of new infrastructure in China. Our portfolio companies, including DiDi Freight, JD Logistics, Sensetime, and UCloud have proven our visionary strategy. We believe our strategy can help our investors to capture the potential upside from the transformation of traditional industries and new infrastructure development.

If you would like to hear the latest updates on the Firm and the Fund, please feel free to contact our Investor Relations team at IR@VMSIG.COM.