West Fund, a private equity vehicle for steel producer Shougang, has co-led a RMB500m ($73.5m) funding round for China-based online steel trading platform Zhaogang, China Money Network reported yesterday.
China Renaissance Private Equity Fund co-led the round, which reportedly also featured Russia-China Investment Fund (RCIF), a joint venture of sovereign wealth funds Russian Direct Investment Fund and China Investment Corporation.
Founded in 2012, Zhaogang operates an e-commerce and services platform aimed at the steel industry. The company’s services include steel storage and processing, logistics and online trading.
Zhaogang claims that each day it processes some 200,000 tons of steel on its trading platform, on which more than 60,000 corporate buyers are registered. It is currently active in foreign markets including South Korea, Thailand, Vietnam, the Philippines, Singapore and the United Arab Emirates.
The funding will support continued international expansion efforts, with RCIF set to assist it in Russia.
Zhaogang had previously closed a $153m series E round backed by undisclosed investors in January 2016. At the time, local media reports suggested the company was gearing up for an initial public offering, but those plans have not materialised.
The company’s total funding now stands at $363m. Its other backers include IDG Capital, Huasheng Capital, Sequoia Capital, Matrix Partners China, K2 Ventures, Zhen Fund and Bull Capital.