Hangzhou-based Xiaonong Network Technology, operator of B2B fresh vegetable m-commerce app Song Xiaocai, has completed RMB 230 mln in Series B1 funding led by Global Logistics Properties with participation from IDG Capital Partners, Matrix Partners China, Puhua Capital, and Index Capital.
Song Xiaocai is a fresh vegetable B2B platform directly connecting vegetable growers or base procurers with distributors in community farmer markets. Song Xiaocai uses a downstream ordering model where distributors place an order for next-day early-morning delivery.
Song Xiaocai has already completed base data platform construction for people, goods, and vehicles with separate mobile apps targeting delivery drivers, suppliers, and purchasers. The large volume of verified transaction data will provide a basis for an expansion into supply chain financial services. Song Xiaocai also plans to expand its upstream suppliers beyond Shandong to cover the entire country, incorporating different stages of the industry chain, such as processors, deliverers, and cold storage. Song Xiaocai has already begun to explore value-added services in logistics and delivery.
Song Xiaocai covered 45 cities ranging from first tier to fourth tier as of the end of 2017 and reported an annual transaction weight of 200,000 tons. Core product market penetration in Shanghai, for example, has reached 10-20% for potatoes and 20% of onions. The platform has accumulated more than 100 product types and over 2,700 standard product units.
Editor's Note: For more information on this topic, please see B2B Fresh Vegetable M-commerce App 'Song Xiaocai' Wins RMB 85 Mln Series A+, MD 5/04/16 issue.