China’s Industrial Supply Platform ZKH Nets $315 Million
(Deal Street Asia) — Chinese industrial products e-commerce platform ZKH Industrial Supply Co. Ltd. has completed a $315 million series E financing round led by YF Capital, a private equity firm cofounded by Alibaba’s Jack Ma and David Yu in Shanghai in 2010.
State-owned China Structural Reform Fund Co. Ltd., and CIC International Ltd. — China Investment Corp.’s overseas investment subsidiary — were the “joint lead investors,” ZKH said in a statement Wednesday.
With the latest financing, the total corpus raised by ZKH has crossed 4.5 billion yuan ($671 million), and the latest round is also the largest funding in the field of industrial products, ZKH said.
GLP Pte. Ltd. and Xiamen C&D Corp. Ltd.’s joint fund GLP-C&D Equity Fund, and Xiamen C&D Inc. are the two new investors who participated in the fundraising. Existing investors who re-upped include American global hedge fund Tiger Management LLC, Tencent Holdings Ltd., MatrixPartners China Management Ltd., Legend Capital Co. Ltd., Genesis Capital, supply chain-focused Eastern Bell Capital, and Shenzhen-based Cowin Capital.
Chinese new economy-focused investment bank China Renaissance Holding Ltd. facilitated the transaction.
Funding from the current round will be allocated to products, services, technology, and team management, as well as to enhance supply chain capacity.
ZKH, which was set up in 1996 in Shanghai, is a business-to-business platform for industries. It distributes industrial products including adhesives, lubricants and equipment, and it also provides maintenance, repair, and operations solutions to enterprises through the integration of e-commerce channels and offline networks such as regional service centers, logistics operation, and smart storage management.
The platform has forged over 8,000 partnerships and counts more than 15,000 clients, it said. “We believe ZKH can significantly contribute to China’s manufacturing innovation through its digitalised one-stop service platform,” said Na Li, a partner at YF Capital, in the statement.
Before the fresh update, ZKH closed seven rounds of funding. It had garnered $160 million in a series D round from Tencent, MatrixPartners China, Legend Capital, Eastern Bell Capital, and Shang Qi Capital in 2019. In 2018, it had also pocketed a $129 million series C funding from Tiger Global, Shell, and Oriza Holdings, among others.
This story was first published in Deal Street Asia.
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