Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

Britain Bans Installation of New Huawei 5G Equipment from September 2021 in Major U-Turn
Chinese Investors Bullish About Space as Satellite Startup Pockets $375 Million in Pre-IPO Funding Round
Fashion E-Retailer Mogu Gets Livestreaming Lift in Otherwise Dismal Quarter
Chinese-Focused Food Delivery App HungryPanda Raises $70m
Trending in China: Should Chinese School Employees be Punished for Celebrating Thanksgiving?
China Exempts Tesla Model Y from Purchase Tax
GL Ventures Leads $265m Series C Round in Chinese SaaS Edtech Firm EEO
In 165 countries, China's Beidou eclipses American GPS
China On Cusp of Becoming Third Ever Country to Collect Lunar Samples as Chang’e 5 Prepares for Moon Landing Among Bidders for Japanese Skincare Brand Fancl’s Asian Business: Reuters
Trending in China: Did Sichuan Forget to Tell Chongqing About Their Joint Olympic Bid?
Alibaba’s Healthcare Unit Finds Tonic for Profits
Trending in China: Beijing Tackles Parking Shortage With Shared Spaces
Chinese Wireless Telecoms Operators Join Forces to Build 5G Base Stations to Reduce Costs
Ruhnn, Another U.S.-Listed Chinese Company Looks to Go Private
Unicorns surge to 500 in number as US and China account for 70%
Trending in China: Social Media Comes Out in Support of High Quality Fakes
Xiaomi-Backed IoT-Enabled Appliance Maker Sees Revenues Grow While Profits Slump
Chinese Startup WeRide Reports Promising Robotaxi Results
Trending in China: God recalls his hand – tributes to Maradona from Chinese social media after his death
Chinese Tech-Enabled Truckload Platform Zeyi Nets $91m in Series C Round

Eudora Wang / Nov 20, 2020 02:47 PM / Business & Tech

Chinese tech-enabled truckload platform Zeyi Supply Chain Management has secured nearly 600 million yuan ($91.1 million) in a Series C round of financing jointly led by Shenzhen-based private equity firm Co-Stone Asset Management and China-focused investment company Orchid Asia Group.

Its existing investor CICC Capital, the private equity investment platform of Hong Kong-listed China International Capital Corp (CICC), re-upped in the new round. Chinese investment bank Taihecap served as the exclusive financial adviser of the deal, according to a statement obtained by DealStreetAsia.

Established in 2008, Shanghai-based Zeyi focuses on linehaul shipping, which is the transportation of freight through designated routes between cities. The firm’s offerings cover full truckload shipping, less-than-truckload shipping, railway & road transportation, intercity delivery, and cold-chain logistics.

According to its website, the firm has built a nationwide network that covers 324 cities in China, delivering services to clients in the fields of express & logistics, e-commerce, fast-moving consumer goods (FMCG), food, and home appliances, among others. Its major clients include Yum China, an operator of KFC, Taco Bell and Pizza Hut restaurants in the mainland.

Zeyi said that its revenue has increased at a compound annual growth rate (CAGR) of nearly 50 per cent in the past five years.

“The linehaul market in the US has witnessed the birth of players with a market capitalisation of as much as over $5 billion. But the segment is still highly fragmented in China,” said Wallace Guo, managing partner of Taihecap, in the statement. “We firmly believe that China’s linehaul industry will incubate great companies that can eventually capture market capitalisation of hundreds of billions of yuan.”

Zeyi will use the proceeds from the Series C to further increase investment in its IT infrastructure and to strengthen the firm’s market position as it seeks to disrupt the Chinese fragmented logistics industry.

Upon the completion of the Series C round, Zeyi has raised an aggregate of three funding rounds.

The firm closed a Series B round led by China-based global investment firm Primavera Capital Group, with participation from CICC Capital in 2018. Its Series A round was backed by Chinese supply chain-focused investor Eastern Bell Capital in 2015. The financial terms of the previous rounds were not disclosed.

Eastern Bell Capital remains as Zeyi’s largest institutional investor post the investment. Yin Junping, partner, Eastern Bell Capital, expects to see “dozens of listed companies” in China’s full truckload shipping market in the next decade as the development of domestic players will ride on a market scale of over 3 trillion yuan ($455.7 billion).

This article was originally published by Deal Street Asia


Share this article
Open WeChat and scan the QR code