China-based cross-border e-commerce logistics provider Zongteng secured RMB700m ($104m) yesterday in a series B round co-led by logistics company Global Logistic Properties and private equity firm Cathay Capital.
Venture capital firm Eastern Bell Venture Capital also contributed to the round, having led the company’s $14.9m series A in 2018. Zonglink Capital and Qianhai Mergers and Acquisitions Funds had previously invested an undisclosed amount in Zongteng in 2016.
Founded in 2007, Zongteng provides logistics services for e-commerce companies. It operates some 60 warehouses and transit hubs across Australia, Europe, Japan and the US, and processes more than 500,000 shipments each day.
The capital will go towards infrastructure development, supporting plans to boost Zongteng’s parcel sorting capabilities, improving its customs clearance procedures and building large-scale distribution centres in Europe and the US. It will also fund business growth and an increase in operational efficiency.
Cathay Capital will assist the company’s expansion efforts in the US and in Europe, which Zongteng intends to achieve partly through collaboration deals, mergers and acquisitions.
Wang Zheng, partner at Cathay Capital, said: “With the rapid development of China’s cross-border e-commerce market, especially the business-to-consumer model, we believe Zongteng Group will continue improving its product portfolio to meet the growing market demand.”
