China B2B liquor platform Yijiupi raises $100m Series C

Source Code, Lighthouse Capital, HG Capital and China online-to-offline local services platform Meituan-Dianping also participated in the round.

Set up in September 2014, Yijiupi serves as an information source and purchasing platform for bar and restaurant owners. The business model is one of classic supply chain disruption. Bulk liquor orders are typically processed through several regional and local distributors with more than 700,000 in China, but Yijiupi directly connects buyers with suppliers. By aggregating orders from multiple buyers, the company achieves greater bargaining power and lower prices.

Chaocheng Wang, CEO of the company, told 36kr that the products sold from its platform are 1-3% cheaper than traditional distributors.

Bertelsmann Asia Investments provided Series A funding to Yiujiupi a few months after launch. Last September, the company raised a RMB200 million Series B round led by Source Code, and an extended Series B round was completed in March. Two months later, Meituan-Dianping invested in Yijiupi as part of a partnership to supply liquor products to merchants on the Meituan-Dianping platform.

The company operates 70 warehouses and owns 600 trucks that deliver products to 200,000 retailers located in 72 Chinese cities. It generates about RMB600 million ($90 million) in revenue every month, and is on course for an annual total of RMB5 billion ($750 million). At that time, the business is expected to become profitable, said Wang.

The new funding will be used for business expansion, and to explore new business areas such as providing financial services within the Yijiupi supply chain.

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• Topics
• Greater China
• Technology
• Consumer
• Expansion
• China
• TMT
• Venture
• Greenwoods Asset Management
• Source Code Capital
• Lighthouse Funds