TPG-SoftBank fund backs Chinese SaaS platform

 Established in 2012, Wangdiantong provides an e-commerce enterprise resource planning (ERP) platform for medium to large-sized retailers. Its services include the management of corporate affairs, logistics and warehousing, inventory orders, procurement of goods and after-sale services. Most of the revenue is generated from the SaaS services.

The platform allows retailers to connect with e-commerce websites such as Taobao, Tmall, JD.com, among others. The company claims to have served more than 100,000 clients, including Johnsons & Johnson, Budweiser and COFCO Group, with a customer retention rate has reached 91.3%. The fresh capital will be used to expand the company’s coverage and recruit more talent, according to a statement.

“The motivation for us making this investment does not only derives from our bullishness about the potential of the SaaS ERP segment in China but also the over 100% compound growth rate of the company over the past several years, as well as its more than RMB100 million in revenue accumulated during the period,” said Haipeng Ding, a partner at the TPG-SoftBank fund.

China’s SaaS industry was worth $1.3 billion in 2017, making it the second largest in the world, according to IDC. It is expected to grow by 37.5% over the next five years, reaching $5.8 billion. Other recent activity in this space includes an $150 million round for Black Lake, an industrial SaaS service provider and a Series C for human resource management platform operator IfChange.

The $300 million TPG-SoftBank fund was launched in 2018 with a focus on early-stage start-ups in the fields of technology, media, and the internet. The vehicle is managed by members of TPG’s growth investment team in China.

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• Topics
• Greater China
• Early-stage
• Support services
• Technology
• TMT
• TPG Capital
• China
• e-commerce
• SOFTBANK Ventures Korea