China delivery service provider UC Express raises $46m

Domestic player Fujian Tuo Feng Investment Management also participated in the round, the company told a press conference. 

Shanghai-based UC Express was founded in 2009 and now owns approximately 80 logistics centers. It provides delivery services for parcels between 3-50 kilograms, and has about 50,000 employees and 8,800 delivery vehicles. The company made a pledge in March to waive fees on delayed deliveries in six major cities, including Shanghai and Guangzhou. 

The net proceeds of the new round will be used to expand the company's logistics network, improve its IT systems, and adopt automotive equipment into operations.

Spurred by a lack of high-quality supply and rising demand from retail customers, private capital is flooding into China's logistics sector, with warehousing providers and third-party logistics players among popular targets.

SF Express, China's largest express delivery services provider, which is backed by several PE investors, is currently looking to list in Shenzhen through a reverse merger. Smaller domestic player YTO Express - backed by Alibaba Group and Yunfeng Capital - is targeting a reverse merger in Shanghai, while Shentong (STO) Express listed in Shenzhen through a backdoor listing in December.

Eastern Bell Ventures focuses on logistics, supply chain, consumer and retail, as well as online-to-offline (O2O) e-commerce companies. It manages two renminbi-denominated funds, with CDB Capital and Oriza Holdings among the LPs.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Expansion
• Support services
• China
• Logistics
• Growth capital