(Yicai Global) June 13 -- Chinese business-to-business (B2B) intracity delivery startup Xiamen Weijie Urban Delivery has completed its CNY116 million (USD18 million) B-round funding, it announced yesterday. It was the only financing deal worth more than CNY100 million in the intracity logistics industry thus far this year, public information shows.
Firm founder and chief executive Wang Qi announced this at a forum themed New Retail, New Urban Logistics.
Sinovation Ventures (Beijing) Enterprise Management and SAIF Partners drove the round, with Dyee Capital and Xiamen Jin Yuan Investment Group riding shotgun, and Galaxy Capital tagging along as sole financial advisor.
Formed in 2014, Weijie opened its management and operations headquarters in Shanghai in July 2015. It specializes in the B2B intracity logistics business in China, providing clients with room-temperature and cold-chain delivery and warehousing services.
The company held a pre-A funding round in late 2015 and its A round last year. The investors then were Great Navigation Capital and Dyee Capital.
Known as the 'last mile' in logistics, intracity delivery is pivotal in supply chain operations. Demand for intracity logistics services has spiked, driven by continuous restructuring of urban industries, evolving consumption patterns, growing penetration of e-commerce technologies and diversification of business development models in cities.
After the funding round concludes, Weijie will expand its operations to cover 55 cities and usher in affiliated programs in 150 cities within three years to create an operating network with over 100,000 corporate clients, Wang said.
Proceeds will also go to information technology system development and the firm will lavish an additional CNY50 million on staff training every year and set up its own school to enhance the competence and expertise of its teams to entrench itself in the market as a leading warehousing and logistics operator.
Editor: Ben Armour