Cathay Capital Invests in Yimidida, Leading Logistics Platform

May 4, 2020

Cathay Capital Private Equity (“Cathay Capital”) is pleased to announce that it has completed a growth investment in Yimidida, an emerging less-than-container-load (“LCL”) logistics platform which covers 27 provinces in China with deep networks in tier three and four cities. Founded in 2015 and headquartered in Shanghai, Yimidida was formed by uniting 14 regional, leading logistics companies with the vision of creating a dynamic platform to connect provinces, cities, towns and counties while offering seamless, cost-effective and high-quality delivery services. Cathay, as a leading investor in Yimidida, along with GLP, Source Code Capital and K2VC, will accelerate the Company’s process of optimizing its national network and facilitate its cross-border business development.


The market of LCL logistics in China has reached RMB 500 billion(1) and continues to grow rapidly, particularly in recent years. The industry is still highly fragmented with the top five companies making up just 5% of the market(2), leaving tremendous opportunity for consolidation. Consumers in tier three and four cities represent over 80% of the population in China(3), and they represent a growing segment of the population who are fully taking part in China’s consumption upgrade megatrend. This dynamic drives logistics companies to expand the breadth and depth of their services and geographic coverage to meet new demands.


Yimidida has advantages in delivering to towns, counties and villages across China as most of its affiliate companies are local enterprises that use Yimidida’s sophisticated systems to manage and save costs in transportation. The Company also has flexible routes by uniting brands, products, management and clearing systems with a goal of achieving unparalleled network scalability.


In addition, Yimidida is leveraging its foundation and advantages in tier three and four cities to gradually build its logistics network in coastal tier one and two cities. Currently, the Company is expanding its footprint in the Jiangsu, Zhejiang and Shanghai regions and is quickly establishing its presence to cover the East China area. Progress made includes the addition of a direct marketing center and affiliate network, the integration and expansion of transport routes, and the building of distribution infrastructure.


This financing round will be a catalyst to build Yimidida’s network in East China area as well as invest in additional human resources, upgrade its IT system and further develop value-added services. “We value Cathay Capital’s cross-border capabilities and international presence and are honored to join Cathay’s family of companies. Our common strategic visions will help Yimidida access global business resources and combine advanced logistics technology with a local practice,” stated Mr. YANG Xing, CEO of Yimidada.


Mr. CAI Mingpo, Founder and President of Cathay Capital said, “Currently the LCL logistics market is fragmented in terms of national standardization and regulation. But Yimidida’s unique ‘bottoms-up’ business model can help to unify the market, set high standards and effectively increase access to the market. Cathay plans to leverage its extensive resources in North America to connect Yimidida with leaders in the U.S. LCL industry to learn from their business models, operations experience and further enhance Yimidida’s efficiency and growth in the long term.”