China e-commerce enabler Xingyun raises $600m - update

HI Transformational Fund is an independent private equity firm that was incubated by Harvest Fund Management. It targets enterprise technology investments that are at an inflection point in their development.

Other new investors in Xingyun's Series C extension include Keywise Capital Management, Mirae Asset Financial Group, and UOB Venture Management. Existing backers such as Taikang Insurance Group, Matrix Partners China, 5Y Capital, and HighLight Capital re-upped.

The first tranche of the Series C closed at $200 million last year, with Taikang in the lead.

Xingyun's angel and pre-Series A rounds were provided by Eastern Bell Capital and Fortune Valley Capital, respectively, in 2015 and 2016. Two more rounds closed in 2018, with GSR United Capital leading a Series A and Matrix doing the same for a Series B. National SME Development Fund invested $100 million in 2019.

The company helps small and medium-sized Chinese merchants import goods from foreign countries more efficiently. It offers a service called drop shipping, where the domestic merchant only needs to sell the goods; Xingyun will ship directly from its warehouse to the consumer.

The company has provided nearly 200,000 domestic online and offline small and medium-sized retailers with digital supply chain services for approximately 3,000 overseas consumer brands and nearly 50,000 stock-keeping units. It connects hundreds of millions of consumers across more than 200 domestic e-commerce platforms through digital links to nearly 150 logistics centers.

This year, Xingyun plans to expand its coverage and help Chinese brands sell overseas. The proceeds of the extended Series C will go towards establishing online and offline logistics and capital flow channels in more than 70 countries.

Digitizing supply chains remove inventory concerns for retailers and organize supply according to demand, according to Xiao Zhou, a vice president at 5Y Capital.

"E-commerce will eventually move towards intelligence,” Zhou said. “Xingyun not only understands consumption habits but also gathers the supply chain data of the next shipment. We believe that there is a huge opportunity for the digital e-commerce supply chain."

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• Topics
• Greater China
• Expansion
• Technology
• China
• e-commerce
• Matrix Partners
• Yunfeng Capital
• Mirae Asset Private Equity
• 5Y capital
• HighLight Capital
• Logistics