Leading Catering Supply Chain Enterprise Xinliangji Raises Another 300 Million Yuan | FreeS Fund Investment News

" From the Investor

Feng Li, Founding Partner, FreeS Fund

Email: feng@freesvc.com

We're very interested in the food and beverage sector, even though it's a difficult space to invest in within China. Chinese F&B has pronounced regional characteristics, with strong food culture traditions and highly diverse consumer demands. At the same time, the agricultural supply chain behind the restaurant industry isn't easily standardized or scaled — something rooted in the past 40 years of China's smallholder farming economy.

Given that both supply and demand are fragmented and highly varied, I believe that food processing and manufacturing will be the first link in China's restaurant industry to achieve real economies of scale.

Over three years ago, we chose Xinliangji as FreeS Fund's first restaurant industry investment for two main reasons. Founder Li Jian is a serial entrepreneur who had two prior successful ventures in the restaurant space before starting Xinliangji, giving him deep industry expertise. Additionally, Xinliangji's decision to enter through a single category — crayfish — was, without question, a distinctly Chinese opportunity. As a signature Chinese cuisine, crayfish's market size has climbed steadily over the past decade, growing tenfold, which provides the foundation for a restaurant supply chain business to scale. Over the past three years, we've watched Xinliangji expand from a single blockbuster product into multiple product categories. Congratulations to Xinliangji on its achievements.

We believe that China will ultimately see multiple restaurant supply chain companies reach substantial scale.

"

Restaurant Supply Chain Leader Xinliangji Raises Another 300 Million Yuan

Source: Xinliangji

On July 20, 2019, Xinliangji Food Technology (Beijing) Co., Ltd. ("Xinliangji"), a leading company in the restaurant supply chain sector, announced it had completed a 300 million yuan refinancing round. This round was led exclusively by Sino-Ocean Capital, with Eastern Bell Capital and FreeS Fund participating as co-investors.

Notably, this investment set a new record for the largest financing round in China's restaurant supply chain sector in 2019. It also marked the third time Xinliangji — founded just three years prior — had won capital market backing. In February 2017, Xinliangji raised 50 million yuan in a Pre-A round led by FreeS Fund; in July of that same year, Eastern Bell Capital led a 120 million yuan new round. This reflects the broad market confidence in the growth prospects of food supply chain companies like Xinliangji, driven by the development trends in new retail and new logistics.

▍Financing to Enable and Connect a New Ecosystem

Founded in 2016, Xinliangji is a restaurant supply chain company focused on vertical management of blockbuster F&B products. Leveraging the R&D capabilities of its "Asian Cuisine Joint Research Center," which combines culinary arts with food science, Xinliangji continuously develops multiple restaurant blockbusters to help F&B businesses solve their most critical product challenges. Through professional vertical supply chain management of blockbuster products, Xinliangji has打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通打通