Bain backs China gas station platform Newlink
Bain Capital Private Equity led a $200 million investment in Newlink Group, operator of a platform that helps drivers in China locate the best value gas stations and charging piles. Joy Capital re-upped in the round.
It follows a $100 million commitment in February led by CMB International in February. The Bain and CMB tranches are part of the same funding round, according to a source close to the situation.
Newlink secured RMB900 million ($128 million) in Series D funding in July of last year with CICC Capital taking the lead. This followed two rounds - of RMB450 million and $110 million - in 2019. Joy led the latter of these. Also in 2019, GSR United took part in an undesignated round of RMB275 million.
The company, which launched in 2016, has two core products: Tuanyou, which specializes in fossil fuels and is linked to more than 23,000 gas stations (20% of China's total); and Kuaidian, which focuses on electric vehicle charging and is linked to 700,000 charging piles (90% of the national total).
In addition, there is a software-as-a-service (SaaS) platform that aims to digitalize partner gas and charging stations. This is intended to help drive incremental sales, reduce procurement costs, and streamline operations.
Newlink's annualized gross merchandise value has reached more than RMB100 billion, up from RMB50 billion at the end of 2019. Expansion plans include converting independent gas stations into Newlink branded "energy service hubs” that offer conventional fuel, EV charging, auto maintenance services, and convenience stores.
“Improved efficiency in the energy market will benefit producers, distributors and users from a cost perspective. It will also reduce carbon emissions, taking us a step further towards creating a more environmental-friendly society,” said Zhen Dai, founder and chairman of Newlink, in a statement.
Dai told AVCJ in a previous interview that Newlink has become one of the largest data providers within energy infrastructure. It has developed a heat map showing the most active driver areas to help network operators plan new construction according to the demand.
Dai sees charging stations as equivalent to hotels and he wants Newlink to become the equivalent of Ctrip, taking a cut of traffic flow that goes to all parties.
China Renaissance served as the exclusive financial advisor for Newlink's latest round.
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.