Beijing-based Fuyou Online Information Technology, operator of long-distance logistics platform Fuyou Kache, has won RMB 250 mln in Series C funding led by Legend Capital, as well as RMB 300 mln in debt financing from AVIC Trust and Global Logistics Properties (GLP). Other investors in the Series C round include Eastern Bell Venture Capital, Global Logistics Properties (GLP), AVIC Trust, and ZhenFund.
The funding will primarily be used for data platform construction, staff training, and construction of a supply chain financing system.
Fuyou connects third-party logistics companies, such as SF Express (002352.SZ) and Goodaymart Logistics with freight brokers to help cargo owners find trucks. Fuyou Kache's monthly transportation revenue has grown from RMB 600,000 at launch to RMB 400 mln. Fuyou Kache services 93 large and mid-sized cities in 30 provinces.
Fuyou Kache has also developed an automated quote system that is based on several variables, such as historical transaction prices, weather, market supply and demand, traffic conditions, and product category, to precisely calculate a quote for the cost of hiring an entire truck. The quote can be prepared within 1 hour.
Fuyou Kache is also partnering with insurance firms such as PICC Property and Casualty and China Continent Insurance to create a targeted freight insurance product.
Editor's Note: For more information on this topic, please see "Long-distance Logistics Platform 'Fuyou Kache' Raises RMB 100 Mln Series B," MD 4/12/16 issue.