Yunfeng invests in China's Quanfeng Express

The round is worth several hundred million renminbi. Further financial details were not disclosed but Quanfeng's management team retains a controlling stake in the firm.

The new capital will be used to expand logistic networks, improve customer service and strengthen internal operations.

Founded in 2010, Quanfeng operates over 3,000 service points across different Chinese cities, 59 logistic centers and has over 30,000 courier delivery personnel. In February 2013, it raised RMB200 million from Leading Capital, Beijing Pengkang Investment and Phoenix Capital Investment.

Greenwoods Asset Management invested an undisclosed sum in the Series B round of funding.

Both Chinese internet giant Tencent and home appliance and home appliance retailer Gome have tried and failed to invest in Quanfeng, according to a report by 21st Century Business Herald, which is posted on Quanfeng's website.

There have been several high-profile transactions in the express delivery industry in the last year.

In August 2013, a consortium comprising CITIC Capital, Suzhou-based Oriza Holdings and China Merchants Group bought a 25% stake in Shenzhen-headquartered SF Express.

In May, Alibaba Group formed a China Smart Logistic Network, also known as Cainiao Network Technology, teaming up with five existing logistics providers to help the company achieve greater penetration in lower-tier cities. Chinese conglomerate Fosun International contributed RMB500 million for a 10% interest in the project.

Yunfeng was established by Jack Ma and David Yu, founders of Alibaba and Target Media, respectively. The Chinese private equity firm is raising around $1 billion for its second fund. A first close of $600 million came last year and a final close will take place no later than June.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Support services
• China
• Logistics
• Yunfeng Capital
• Alibaba Group
• Growth capital