Meituan-backed Chinese agritech startup nets $123m in series B+ round

Chinese agricultural products distributor Wangjiahuan said it has raised 800 million yuan (US$123.7 million) in a series B+ round led by CPE fund.

Paul Run Holding and Ziming Capital also participated in the round.

The latest investment comes less than one year after Wangjiahuan closed 600 million yuan (US$92.8 million) in a series B round from food delivery firm Meituan and Hidden Hill Capital. The startup secured 400 million yuan (US$61.8 million) in a series A funding in 2018.

Photo credit: Wangjiahuan

Founded in 1995, Wangjiahuan has evolved from a traditional distributor to a technology platform via its franchising business model.

The Shenzhen-based company has developed its own software-as-a-service (SaaS) solution for its cloud-based supply chain platform and built a digital platform to connect its partners to brands and production bases. It also integrates its online and offline channels for supply chain and logistics distribution.

With the fresh funds, the firm will improve its online infrastructure including its SaaS platform to digitalize purchasing processes and to improve delivery.

Wangjiahuan will further invest in its offline channels, including the construction of shared distribution centers and a cold-chain logistics system. It will also look for more partners to expand its market in China.

To date, Wangjiahuan said it has nearly 150 subsidiaries and served more than 20,000 institutional customers.

Currency converted from Chinese yuan to US dollar: US$1 = 6.46 yuan.