Recently, Kuaitu Logistics has announced the close of its 8-figure(USD) series B round. The round was led by ZWC Partners, while new investors including Country Garden Venture Capital, along with existing investors including Aotuo Investment, Sinovation Ventures, also participated in the round. The new capital injection will be used for domestic market expansion, product upgrades, and research and development.
Regarding this round of financing, Patrick Cheung, the Founding & Managing Partner of ZWC Partners remarks, “Kuaitu’s target customers are SMEs. There’s a trend for Chinese SMEs to have their sales channel permeated into the ‘Sinking Markets’ (lower-tier cities). There’s also a significant increase in demand for large ticket LTL (less-than-truckload) orders. These fragmented logistics needs require a more efficient ‘one-stop door-to-door’ professional service, which operates at a lower cost and higher efficiency. In addition, for the large ticket LTL market in China, the CR10 (market share of 10 largest firms) is largely fragmented, with less than 5%. In a highly fragmented market like this, there’s a lot of opportunities for platform integration and consolidations. It’s possible to have a new SF Express in this space. We have conducted in-depth research into the Chinese large ticket LTL market, and we have made a decisive decision amidst this special epidemic period to partner with Kuaitu. We highly value the team capability in leading the industry in the near future.”
Liu Chenhuan, the CEO of Kuaitu Logistics, said that the team has been level-headed amidst multiple rounds of financing. “The company has always been focusing on solving the pain points of SME logistics with technological and business model innovation. The reason why Kuaitu has been favored by world-renowned investors is mainly due to our unique core competitiveness. SME logistics is a trillion yuan blue ocean market. In the future, Kuaitu will accelerate the pace of development, continue to improve product service experience, and strive to become ‘China’s most trusted SME logistics platform’.” He adds.
About Kuaitu Logistics
Kuaitu Logistics was established in August 2017. It is a smart logistics platform with an innovative model that provides one-stop door-to-door transportation service to SMEs. The company has maintained a low profile in the press. Previously, Kuaitu received several rounds of funding from Sequoia Capital, Sinovation Ventures, ZhenFund, and other institutions. The business has been scaling rapidly and no formal financing information has been disclosed.
Relying on its artificial intelleligence system, Kuaitu Logistics accurate identifies the logisitic characteristics and operational needs of SMEs, integrates high-quality social capacity in its platform, and forms an efficient scheduling and operation execution systm to meet the fragmented needs of SMEs. Through an innovative model that combines online and offline, the company significantly reduces operational costs and improves operational efficiency. It also provides a unique ‘Logistics Escrow’ services to SMEs, allowing its customers to truly experience a convenient and fuss-free logistic service.
After more than two years of development, Kuaitu’s logistics service network has covered the Pearl River Delta, the Yangtze River Delta, the Economic Zone on the Western Coast of the Taiwan Straits, and the Bohai Economic Rim, forming a direct regional transportation network across the country, serving tens of thousands of SMEs and widely recognized.