China’s 51Zhaoyou gets $150m in Series C funding

Rainbow Capital led the first tranche while Global Logistic Properties led the second. Other participating investors include Tide Capital, Oceanpine Capital, and G7, another logistics player. They were joined by existing backers GGV Capital, DCM Ventures, SIG Asia, Sky9 Capital, and Yunqi Capital.

Founded in 2015, 51Zhaoyou.com facilitates nationwide online petroleum-based fuel trading between suppliers and buyers, covering diesel oil, kerosene, gasoline, and fuel oil. In addition to matching services, the platform also provides online payment, logistics, and lending services. In 2016, the company began acting as a seller as well.

51Zhaoyou.com received a $31.2 million Series B last year led by DCM with participation from PE-backed online truck logistics company Huochebang. This followed a $10 million Series A in 2016 led by Sky9. Zhaogang, a B2B steel-trading platform, provided seed funding earlier the same year.  

Industrial material trading platforms have proven an attractive business model for VC and PE investors in China. Previous activity in this space includes a string of investments from VCs including IDG Capital, GX Capital and Matrix Partners China in Zhaosuliao, a B2B plastics trading platform.

Meanwhile, Zhaogang has filed for a Hong Kong IPO that is reportedly seeking to raise $400 million later this year. Zhaogang will adopt a weighted voting rights structure that allows founders to retain control after their equity interest falls below 50%. 

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• Topics
• Greater China
• Technology
• Industrials
• Expansion
• TMT
• energy
• China
• GGV Capital
• GLP
• Sky9 Capital