Chinese auto parts supplier raises $28m in Series A extension

The new investment comes seven months after a RMB170 million Series A funding led by Eastern Bell. The company - which is also known as Santouliubi - claims to have achieved 10% in monthly revenue growth in the first half of 2019, while compound annual growth has surpassed 200% over the past two years.

Founded in 2015, Mancando serves 130,000 repair shops in 18 provinces. Its warehouse footprint is 50,000 square meters. The company has exclusive rights to 85% of the brands sold. It has also developed software-as-a-service (SaaS) systems for franchise stores. For example, these systems can automatically monitor inventory and send alerts when replenishments are required.

The new funding will go towards warehouse expansion - there is currently one for each province - the construction of 150 direct flagship stores, and the recruitment of 2,000 more franchise partners, according to Jibin Song, Mancando's chairman. In addition, the company plans to introduce new domestic and overseas brands, and build out its management team.

Jingzhong Cai, the founder of Galaxy Capital, compared Mancando to Miniso, a low-cost Chinese consumer goods retailer. He believes both companies are part of a trend whereby domestically produced goods supplant overseas brands as customers seek an optimal balance between price and performance.

Other private equity and venture capital investment in the auto parts space has tended to focus on online operators. These include Baturu Technology, which received a $100 million Series C led by Warburg Pincus in 2017. Eastern Bell is also an investor in Baturu.

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• Topics
• Greater China
• Consumer
• Technology
• Early-stage
• Legend Capital
• Eastern Bell Venture Capital
• automobiles