Chinese alternative asset management firm CDH Investments has led a RMB300 million (US$44 million) series B round in Yimidida, a Shanghai-based logistics services platform focused on small cities and counties in China.
Global Logistic Properties Ltd., Source Code Capital, K2VC, and Tuofeng Investment also participated in the round, according to a company announcement.
Founded in 2015, Yimidida specializes in last-mile delivery services for small and light parcels, less-than-truck-load services for mid-size parcels, and full-truck-load services for large parcels. Its network of 3,000 locations covers so-called third-tier and fourth-tier towns and villages in China.
Yimidida has also developed a cloud-based logistics services platform that utilizes big data and mobile Internet to match demand and supply, improving dispatch and truck deployment efficiency. The system also manages call centers and logistics record keeping, as well as payment settlement and order tracking.
"The key components of traditional logistics are vendors, buyers, storage demand and logistics demand," said Zhang Haifeng, a partner at CDH Investments. "In the future, logistics companies have to focus on information and financial services, and on integrating technology to reduce cost and improve efficiency."
The company previously raised a series A round of nearly RMB100 million (US$14 million) last September from Source Code Capital, K2VC and Global Logistic Properties, the Singapore-listed warehouse management firm that is currently being taken private by a Chinese investor group.
It plans to use the latest proceeds to set up two wholly-owned subsidiaries, Kakahui, a truck logistics unit, and Yimidida Finance, a unit providing financial services for suppliers and customers. It also plans to invest RMB100 million (US$14 million) to build a logistics network to develop a number of financial products, such as loans and installment payment services.