Mobile Renewable Resource Recycling App Xiandou Raises RMB 8-digit Series A
36kr.com, 12/20/16
Beijing-based Moli Xiangxian Technology, operator of mobile renewable resource recycling app Xiandou, recently announced completion of RMB 8-digit Series A funding led by Tendence Capital with participation by Aqua Ventures. The company previously completed RMB 7-digit angel funding from Aqua Ventures in July 2015, and RMB 7-digit pre-Series A funding in May 2016 from undisclosed investors.
Xiandou, launched in July 2015, provides door-to-door renewable resource recycling services. The platform is available via both a mobile app and a public account on Tencent's (0700.HK) WeChat mobile messaging app. Customers include enterprises and businesses such as malls, supermarkets, manufacturing facilities, and households with significant recycling requirements. Xiandou mainly handles waste paper, cardboard, and boxes. It is also preparing to set up a storage center elsewhere in Beijing. Once bundled, the materials are sold to paper mills which process them into new products.
Fang Hao, CEO of Moli Xiangxian, said that between the bundling plants and paper mills there’s a gross margin of about 20%, the accounting cycle is relatively short, and demand is robust, but the supply side is fairly fragmented, so there are good integration opportunities.
Xiandou operates several versions of its app for customers, recycling agents, drivers, and sales agents, as well as a bundling station software-as-a-system (SaaS) system, online transaction system, and logistics planning and management system. As of December, its recycling business covered major commercial areas in six districts within Beijing. It has more than 1,000 medium- and large-sized enterprise and commercial business users, and monthly income exceeds RMB 10 mln. Fang Hao added that the company generally pays about RMB 0.8/kg to purchase the waste materials, and subsequently can sell them for as much as RMB 1.5/kg, and that the company is already profitable.
Moli Xiangxian Technology was established in 2015.
Keywords: Xiandou Moli Xiangxian funding recycling wireless Series A Fang Hao Aqua Tendence mobile application business model
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