Source Code Capital Portfolio Company Yimi Dida Raises RMB 1.8 Billion in Series D, Existing Shareholder Source Code Capital Continues to Increase Stake

源码资本·January 14, 2019·0·0

On January 14, 2019, Source Code Capital portfolio company Yimi Dida Supply Chain Group Co., Ltd. (hereinafter referred to as "Yimi Dida") announced the completion of its Series D funding round of RMB 1.8 billion.

On January 14, 2019, Source Code Capital portfolio company Yimi Dida Supply Chain Group Co., Ltd. (hereinafter referred to as "Yimi Dida") announced the completion of its RMB 1.8 billion Series D funding round.

The round was led by Boyu Capital, with follow-on investments from returning and new investors including Source Code Capital, Hopu Investment, and Prologis Hidden Hill Capital. China Renaissance served as the exclusive financial advisor for this round of financing and the regional consolidation of smaller logistics players.

This funding round set a record for the largest single financing in China's less-than-truckload (LTL) express freight industry, representing strong recognition from top-tier financial investors, strategic investors, the market, and society of Yimi Dida's growth potential and enduring real value. As of this announcement, Yimi Dida had completed six funding rounds over 28 consecutive months, with cumulative financing exceeding RMB 3 billion.

Founded in Shanghai in 2015, Yimi Dida is an industry-leading integrated logistics platform that originated from regional partnerships and alliances. Its core business is national highway LTL express freight network services. Through over three years of organic growth and equity restructuring with member companies.

Yimi Dida now covers 31 provinces across China (24 self-operated provincial regions and 7 member provincial regions), with service extending to Hong Kong and Taiwan. It operates more than 12,000 outlets and nearly 200 distribution centers, making it the LTL logistics network platform with the most trunk and branch routes and the highest freight volume in the country.

With the mission of "Making Logistics Smarter, Making Connections More Efficient," Yimi Dida focuses on e-commerce large parcels, small-ticket LTL, large-ticket LTL, and full-truckload logistics, providing customers with cost-effective integrated logistics services.

For logistics enterprises, the ultimate value of strategic development, marketing, and resource building lies in service systems and reputation. This requires continuous upgrading of service capabilities and attention to customer experience. Future competition will inevitably be about service and quality, about cost and efficiency. Yimi Dida consistently adheres to "service and quality as the core" and "customer experience as the center" throughout the entire upgrade process, from product enhancement to logistics technology to transportation services.

Following this funding round, Yimi Dida will continue to increase investment in three key areas going forward: customer acquisition, core operational nodes (such as terminals and route networks), and R&D investment in intelligent technology (automation equipment, full-lifecycle intelligent management). Through its distinctive franchise-operated, direct-managed operational model, Yimi Dida achieves a balanced combination of asset-light and asset-heavy approaches.

Yimi Dida will continue to promote the deployment of intelligent equipment and the construction and implementation of information systems, improving product coverage, achieving data interoperability, and strengthening service stability and operational productivity. Leveraging "IoT + AI" technologies, the company will further advance digital transformation and upgrading to improve quality and efficiency. It strives to win customers with excellent products and services, becoming "the preferred customer-centric integrated service platform based on logistics."

Lucky Yang, Founder and CEO of Yimi Dida

Lucky Yang, Founder and CEO of Yimi Dida, stated: "Over the past three years, Yimi Dida has achieved its phased objectives and secured a leading position in industry freight volume through its distinctive alliance strategy, precise scaling strategy, targeted heavy-investment strategy, and solid talent strategy, all executed rapidly by our team. Going forward, we will continue to put customers at the center, uniting platform users and partners to provide safe, reliable, efficient, and cost-effective logistics services. At the same time, we will move forward with reverence, steadily and far — grateful to all employees, customers, shareholders, and partners who have supported, helped, and followed Yimi Dida. Yimi Dida will further practice its partner culture, embracing openness, symbiosis, and mutual success, to develop together and move forward hand in hand with all partners for shared prosperity."

Chen Zhiyi, Managing Director at Boyu Capital, said: "China's LTL market is on the verge of systemic industry consolidation. As a leading enterprise, Yimi Dida enjoys clear advantages in network structure and execution efficiency. The company's development trajectory is admirable, and we believe that under CEO Lucky Yang's leadership, Yimi Dida will gradually grow into a significant force in China's logistics industry."

Chen Yi, Partner at Hopu Investment, said: "Yimi Dida is a rapidly growing emerging logistics company with tremendous potential. We deeply admire Yimi Dida's top-down spirit of seizing every moment, as well as its strong learning capability and execution power. As a strategic partner, Hopu Investment hopes to accompany Yimi Dida throughout its journey, supporting CEO Lucky Yang in leading the company's continuous self-iteration and upgrade, driving industry consolidation and development, and becoming an industry leader."

Dong Zhonglang, Partner at Prologis Hidden Hill Capital, said: "As one of Yimi Dida's earliest investors and a participant in its business model design, I have high expectations for Yimi Dida! During the golden decade of the logistics industry, we must make big bets on entrepreneurs like Lucky Yang — those with vision, ideals, a focus on practical action, insatiable curiosity, and continuous self-iteration. Yimi Dida is far more than a regional logistics player; it will certainly become the enterprise with the largest freight volume and a new benchmark for technology-driven logistics!"

Yi Cao, Founding Partner of Source Code Capital, as a Series A investor in Yimi Dida, stated: "Yimi Dida serves as infrastructure for industrial internet, helping numerous industries upgrade and restructure, making the circulation of products and raw materials more efficient. The company's strong internal organizational capabilities and evolutionary capacity have supported its rapid growth. As a long-time investor, we are fully confident in the company's future development."

Zhou Liang, Managing Director and Head of Private Equity Financing at China Renaissance, said: "The trillion-RMB LTL logistics industry is a large-scale, long-duration track with low concentration and urgent need for consolidation. Through the integration of regional players and endogenous high-speed growth, Yimi Dida has achieved leapfrog development in revenue and freight volume, becoming one of China's largest and fastest-growing LTL logistics companies. This has earned it the favor of top-tier investment institutions and its continued value creation for shareholders. We remain bullish on Yimi Dida's future development and are committed to being its long-term partner in the capital markets."