China gas station platform Newlink raises $308m
Newlink Group, operator of a platform that helps drivers in China locate the best value gas stations and charging piles, has raised RMB2 billion ($308 million) led by China Merchants Capital.
Existing investor CICC Capital reupped. Part of the fresh capital will be allocated to Newlink’s logistics subsidiary and a newly launched energy asset management fund.
Newlink has raised more than RMB4 billion so far this year. Bain Capital Private Equity led a $200 million investment in March, following a $100 million round led by CMB International in February.
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.
New business units include the logistics unit, which has raised funds independently. It connects refineries, hazardous chemicals logistics, oil depots, and petrol stations to realize one-click oil ordering and transportation. It aims to realize oil product traceability, and effectively reduce the empty driving rate of hazardous chemicals transportation vehicles.
Another new business expansion is to convert independant gas stations into a Newlink-branded comprehensive consumption hub with integrated refueling, charging and swapping, convenience stores, maintenance, photovoltaic power generation, and catering. KFC opened at its Beijing branch in August.
Newlink claims to have saved billions of renminbi for its users, especially commercial vehicle drivers in fuel and electricity bills. Its annualized gross merchandise value is more than RMB100 billion, up from RMB50 billion at the end of 2019.
Zhen Dai, founder and chairman of Newlink, told AVCJ last year his company has become one of the largest data providers in 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.
Newlink secured RMB900 million in Series D funding in July of last year with CICC taking the lead. This followed two rounds - of RMB450 million and $110 million - in 2019. Also in 2019, GSR United took part in an undesignated round of RMB275 million.
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