Gaw Capital backs Chinese restaurant services platform
China-based Candao, which helps restaurants manage their online food delivery businesses, has raised RMB100 million ($14.9 million) in a Series A round led by Hong Kong-based Gaw Capital Partners and Beyond Ventures.
Other participants include MFund and the Hong Kong government-sponsored Innovation & Technology Fund. The capital will go towards developing online platforms and exploring the application of artificial intelligence technology in daily operations, according to a statement.
The deal comes as one of Candao's local peers, Yinshidongli announced it had raised a Pre-Series A round from backed by SIG China. The investment is said to amount to several million dollars.
Founded in 2008, Candao offers services through which restaurants can make better use of existing online food-ordering platforms like Alibaba Group-owned Ele.me and Meituan-Dianping. Its platform allows users to manage delivery channels, customer orders, and delivery staff, and also carry out data analysis and business planning. In addition, the company has developed an interface that connects restaurants with food delivery service providers.
It claims to have more than 200 restaurant chain clients, including McDonald's, Häagen-Dazs, Burger King, Costa Coffee, and Chinese fast food giant Kungfu, covering more than 30,000 outlets across 300 cities. Its monthly average gross merchandise value is said to have surpassed RMB1.4 billion. Operating revenue for 2018 reached RMB100 million, most of it coming from fees charged to clients for use of its online platforms and commissions on orders.
Yinshidongli was established in last October. The business model differs from that of Candao in that it focuses on providing promotion and marketing services for restaurant chains. The company claims to have worked with 10 large chains. Its next phase of development will involve helping traditional dining brands strengthen their online image by becoming more millennial-friendly.
A number of restaurant services platform have emerged in recent years, driven by projections that China’s dining industry will be worth RMB5 trillion by 2020. They include Shihen Technology, which recently raised the second tranche of a Series B round led by a TPG Capital and SoftBank Ventures Korea fund. Shangyou, Zhangdan, and Zaihui are among the other VC-backed players.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.