Zongteng Group Accelerates its Development with a 700 million CNY Funding Round
May 4, 2020
In March 2019, Zongteng Network raised 700 million CNY in a series B funding round led by Cathay Capital and Global Logistic Properties, with the participation of Eastern Bell Venture Capital.
In the past 20 months, Zongteng has completed two rounds of financing raising a total of almost 1 billion CNY. The success of these fund raisings demonstrates the recognition by leading financial and industrial investors of Zongteng’s high value and potential.
Founded in 2007, Zongteng is a global logistics provider and the Chinese leader in cross-border e-commerce and related services. Zongteng’s uniquely global strategy began in 2014 with brands like “Gu Cang” and “Yun Tu”. It soon became the first Chinese e-commerce company to operate warehouses overseas. Today, Zongteng provides its cost-effective and integrated services in China, the United States, Europe, Japan, or Australia to a multitude of e-commerce sellers and brands through a network of nearly 50 warehousing and transit hubs across the world, representing more than 400,000 square meters, close to 1,000 international employees, and the capacity to process over 700,000 orders every day.
This funding round inscribes itself in the framework of a three-year “leap” strategy adapting the business model from “China-Global” to “Global-Global” which translates into international infrastructure developments and improved operational processes. Specifically, the funding round will finance process automation, extending facilities to accommodate heavy cargo and targeted business developments, particularly in the US and EU markets.
Zuan WANG, CEO of Zongteng, stated: “The tide of globalization has opened a new era for the cross-border e-commerce industry. We have worked hard to pioneer a new model over the past four years, and we will continue to improve on existing practices, to enhance the efficiency of China’s globalization and to accelerate the full deployment of global e-commerce.”
Zheng WANG, Partner at Cathay Capital, added: “Zongteng launched cross-border e-commerce in China. It has built a complete logistics and warehousing system across the world and accumulated incomparable expertise over the years. Zongteng is competitively positioned to leverage the strong growth of Chinese e-commerce, especially the B2C segment which is very rapidly developing. With Cathay’s support, Zongteng will further expand its footprint in Europe and the United States through business partnerships and acquisitions to become an e-commerce global leader.”
Copyright reserved: Cathay Capital Private Equity