By Ashley Galina Dudarenok China was one of the first countries to contain the COVID-19 epidemic with relative success, and the economy is better for it. The National Statistics Bureau reported 4.9% growth in China’s Q3 GDP year-on-year, showing improvement against both its 3.2% growth in Q2, and [...]
Zongteng Group will utilize the fresh funds for global expansion, strengthening trunk line transportation capacity and expanding scope of services
Zongteng Group, a leading Chinese cross-border shipping and fulfilment services provider, announced the completion of over US$71 (RMB 500 million) Series C1 round of funding, in a press release on Monday.
The financing round was led by Taikang Life Insurance, along with participation from Xiamen Jianfa, Zheshang Innovation Capital, Fuzhou Financial Holding, and Ancheng Capital. Huaxing Capital acted as the exclusive financial advisor for this round of financing.
In 2019, Zongteng Group completed two rounds of financing, with the total amount exceeding $142 million (RMB 1 billion).
The latest financing round marks one of the largest single financings in China’s cross-border logistics field in recent years, according to the statement.
Zongteng Group has also joined hands with China’s leading financial institution Huaxing Capital, in a strategic partnership deal, the statement reported.
As one of China’s largest comprehensive cross-border logistics service providers, Zongteng Group currently focuses on international dedicated lines, overseas warehouse distribution, e-commerce supply chain distribution services and related value-added services.
The company has established a comprehensive cross-border logistics service network covering the United States, Europe, Japan, Australia and other countries. Founded in 2007, the Shenzhen- headquartered company currently owns 26 overseas warehouses or hubs with a total area of more than 500,000 square meters, 47 logistics lines covering 33 countries on six continents, has over 1,000 overseas employees, and processes more than 1 million orders per day, the press release claims.
The COVID-19 pandemic that brought countries and economies to a halt with global lockdowns immensely impacted the cross-border ecommerce industry, with disrupted logistics lines due to movement restrictions.
According to press report, the pandemic has also opened new opportunities that have prompted the cross-border logistics industry to keep abreast of industry trends, increase investment in capital, improve service capabilities, deploy future-oriented service networks and value chains, consolidate and strengthen the “basic service facilities” of cross-border ecommerce, and build more high capital barriers.
With the latest capital injection, Zongteng Group will adhere to its current positioning of “global cross-border ecommerce infrastructure service provider”, study new issues, patterns, and trends in the development of the industry, and adjust and implement “upgrade, open, and leapfrog” in the future.
The company will also focus on accelerating its expansion outside China, strengthening trunk line transportation capacity, developing feeder transportation networks, accelerating overseas logistics hubs and warehousing construction, improving tail-end distribution capabilities, and providing better international ecommerce logistics service, according to the report.
According to a report by market research company Technavio, the cross-border e-commerce logistics market is estimated to grow by $30.79 billion during 2020-2024, at a CAGR of 8%, after factoring in the impact of COVID-19 on the industry.
Wang Zuan, CEO of Zongteng Group, said: “In the past three years, with the support of investors and customers and the joint efforts of all teams, the group’s service brand matrix has begun to take shape, and the logistics line and overseas warehouse business have reached a new level.”
Director of Taikang Asset Investment Wei Wei said, “The rapid development of cross-border export e-commerce is a manifestation of the advantages of China’s manufacturing industry chain. This advantage also destined that cross-border export ecommerce will maintain rapid growth for a long time in the future.”
Header Image courtesy of Zongteng Group