Cathay Capital invests in Aihuishou to accelerate its strategic development

May 4, 2020

Cathay Capital has agreed to invest $ 15M in Aihuishou, China’s largest electronic recycling services platform. Founded in 2011, the company focuses on used cellphones, tablets, laptops and smart digital products’ recycling and provides customers with safe and convenient services to collect their idle items.

The 3C products recycling market is large (RMB 200bn in size) and very fragmented (800,000 recyclers from family-run store to second-hand products market place) in China. Compared to western countries, the majority of used cellphones is left idle in China, implying huge incremental market potential for second-hand phone recycling.

Aihuishou is the first mover with largest collecting network in 3C products recycling market (155 offline stores in 8 tier 1 to tier 2 cities and probably reach 193 by the end of 2016). and The company standardizes the collecting process and , ensures data security and, solving solves the customers’ pain points, – providing convenient and trust worthy one-stop recycling services for used mobile phones and other 3C products. In addition, Aihuishou has established strategic partnership with JD, the largest 3C products online sellers in China and also, which has further strengthened Aihuishou’s leading position and the company has gradually built brand awareness and shown scale effect.

Based on past 5 years real transactions, Aihuishou accumulates a valuable pricing data base being able to continuously optimized e-quoting system to give more accurate and attractive prices to individual sellers. The company now recycles over 150,000 units per month, almost 10 times in volume compared to the 2nd player. The increasing bargaining power of Aihuishou enables its profitaibility improvement. Cathay Capital, through its investment and commitment of its team, aims to accelerate the development of Aihuishou in on the Chinese market and also overseasthe Chinese and also oversea market.

Mingpo Cai, President of Cathay Capital Private Equity, declared: “Electronic products recycling meets the promising trend of circular economy and sustainable development. Our goal is to enable the company to grow further in China through Cathay local ecosystems. Cathay will also help the company with its oversea business development overseas.”