China supply chain solutions provider gets $356m Series A
Shenzhen-based Zhunshida, or Jusida, a logistics spin-out from Foxconn International, has raised RMB2.4 billion ($355.8 million) in Series A funding led by China Life Insurance.
Other participants include IDG Capital, China International Capital Corporation (CICC), China Railway Supply Chain Group, Ti Capital, and Oriza Holdings. It is said to be the largest-ever funding round for a Chinese supply chain solutions company in the B2B space.
The fresh capital will be used to upgrade and digitalize smart logistics platforms and build an ecosystem that covers different industries, according to Qiujin Yang, the company's CEO.
Zhunshida was established by Foxconn, a key Apple supplier, to meet its transportation needs. The company became independent in 2010, although it continues to work with its former parent. After rapid expansion over the past eight years, Zhushida now serves more than 1,000 corporate clients and has networks in 400 cities globally.
In addition to providing land, water, and air-based logistics services for domestic and international clients, the company offers supply chain finance service and quality control solutions. Clients can monitor shipments in real time through an online smart logistics platform.
“Supply chain solutions is an important investment area for insurers like us. We have accumulated rich experience in this field after investing in companies including SF Express, GLP and JD’s logistics arm. As the only authorised supply chain solution provider for Foxconn, we are betting on Zhunshida to become the leader in this very fragmented industry,” said Fengming Zhang, CEO of China Life Investment.
Despite the boom in e-commerce in China, B2C operations account for less than 8% of the overall logistics market by value. The rest comes from B2B customers and Zhunshida expects this segment to be worth RMB50 trillion by 2022.
Earlier this month, B2B logistics specialist Yimidida raised RMB1.8 billion in a Series D round led by Boyu Capital.
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