Baidu Capital leads Series D for China logistics platform
FineEx, a Shanghai-based logistics provider specializing in e-commerce, has raised RMB500 million ($71 million) in a Series D round of funding led by Baidu Capital.
An additional contribution came from the Russia-China Investment Fund, a $2 billion private equity vehicle established by China Investment Corporation and the Russian Direct Investment Fund.
Founded in 2006, FineEx claims to be China's earliest dedicated e-commerce logistics platform. It has served over 1,500 brands and 200 million customers. The company currently operates 220 warehouses with a total storage area of 2 million square meters.
FineEx's network comprises regional distribution centers that originate products, centralized transportation and storage hubs, and front-end distribution that serve end-customers. This forms the backbone of an integrated, omnichannel service. Unlike traditional logistics and warehousing players, FinEx claims its product offerings are consumer-guided.
The company posted 30% growth in the first half of 2020 and expects 60-70% for the year in full. It wants to build 500 warehouses in the next three years. The proceeds of the latest round will also go towards the development of logistics software and intelligent warehousing technologies and equipment.
"Demand for logistics has changed from pure commodity storage and handling services to order fulfillment and delivery services that focus on optimizing costs, improving efficiency, and improving the consumer shopping experience. We are committed to such refined warehouse operations," said Pingyi Li, FineEx's founder and CEO.
The company raised RMB350 million in Series C funding two years ago led by Sino-Ocean Capital. Previous investors include Aurora private equity and Addor Capital. Meanwhile, Japan's Transcosmos bought a 20% stake in 2013.
The leading player in Asia's warehousing and logistics space is ESR, which started out as an e-commerce logistics platform in China nine years ago. After multiple funding rounds and one significant merger, the company went public in Hong Kong last year.
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