China MRO player Ruigu gets $250m Series D
Ruigu, a China-based industrial supplies platform that serves small and medium-sized enterprises (SMEs), has raised $250 million in Series D funding led by Primavera Capital Group.
Taikang Life Insurance, warehousing and logistics specialist GLP, state-owned supply chain and real estate conglomerate Xiamen C&D, Source Code Capital, Eastern Bell Capital, CDH Investments, and Chengwei Capital also participated.
Ruigu has raised more than $340 million across six rounds, according to AVCJ Research. The Series C – comprising two tranches, one of RMB300 million ($42 million) and the other of undisclosed size – closed in September 2020. CDH, Eastern Bell, Chengwei, and Source Code were all involved.
Several maintenance, repair and operations (MRO) businesses, which serve as a one-stop-shop for products such as industrial accessories, consumables, and spare parts, have received funding in China. The goal is to rebuild traditional procurement channels through supply chain digitalization, integrating trading platforms, digital tools, and intelligent services.
MyMRO, a spinoff of US industrial products supplier Grainger, raised several hundreds of million renminbi in Series B funding in May. This followed a $230 million Series A for JD.com-owned JD MRO and a $315 million Series E for Zhenkunhang in 2020. Xiamen C&D and Eastern Bell are also investors in Zhenkunhang.
Founded in 2015, Ruigu offers more than four million products across 23 major categories from 3,000 suppliers. It claims to have helped more than 150,000 SMEs buy and sell goods. The app-based marketplace is supported by an offline infrastructure that includes 100,000 square meters of warehousing space and a self-developed logistics network.
Stephen Zhang, a partner at Primavera, noted that China’s MRO industry is complex, highly fragmented, and inefficient, with obvious pain points. Ruigu stands out from its peers by virtue of its logistics network, which ensures consistent, high-quality service and improves the efficiency of the industry value chain.
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