China logistics player Jumeng raises $100m
Fortuna Capital has led a USD 100m investment in Shanghai truck-based logistics platform Jumeng Logistcs, described as the third tranche in a Series B round. IDG Capital also took part.
The first two tranches of the Series B – worth USD 100m in aggregate – were announced in December 2020. Investors includes Three Gorges Xintai Investment, SAIF Partners, and Anpu Investment, as well as Fenghua and IDG, according to AVCJ Research.
IDG became Jumeng’s first institutional investor in 2018 and then SAIF provided a pre-Series A extension of CNY 100m (USD 14.5m) in 2019. Later that year, a Series A of undisclosed size was raised from Three Gorges Xintai and IDG.
Jumeng offers full-truckload (FTL) and less-than-truckload (LTL) services. It operates approximately 190 logistics parks, runs more than 10,000 intercity routes, and works with a network of 8,000 local-level partners. In addition to outsourcing services, the company has a 2,000-vehicle truck fleet and dispatch teams covering 30 provinces and municipalities.
The goal is to provide integrated point-to-point services nationwide underpinned by an online platform that facilitates mobile booking, waybill management and tracking, and operational and financial management.
Shiqi Bi, an executive at Fenghua, said in a statement that LTL logistics is a CNY 1trn industry, yet it is blighted by fragmentation and chaotic competition, resulting in inconsistent service quality. “Jumeng aggregates routes, transforms business processes with digital tools, and combines online and offline models, which brings together resources, reduces costs, and improves efficiency,” Bi added.
LTL operators occupy the logistics industry’s middle ground. They typically carry loads of 30 kilograms to 3 tons by road; too big for the express parcel players and too small for FTL carriers. Private equity-backed ANE Logistics, which claims to be the largest player in the space by volume, completed an HKD 1.1bn (USD 143m) Hong Kong IPO last November.
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