Source Code Capital portfolio company YQN Logistics announces completion of $100 million Series D1 funding round, with existing shareholder Source Code Capital continuing to increase its stake

On May 25, YQN Logistics, a one-stop international smart logistics online service platform, officially announced the completion of its $100 million Series D1 funding round — a record-breaking single financing amount for a Chinese company in the international logistics digitization sector.

Founded in February 2015, YQN Logistics combines e-commerce, big data, artificial intelligence, and other digital technologies with traditional international freight to provide enterprises with simpler, more efficient international shipping services — making complex global logistics as easy as sending a package. After six years of rapid growth, the platform now serves approximately 20,000 enterprise clients and is projected to handle 700,000 TEUs in 2021. To date, YQN Logistics has completed seven funding rounds with investors including Source Code Capital, Coatue, DCM, HSG, China Merchants Capital, and Sumitomo Corporation Asia. Source Code Capital was the sole investor in YQN Logistics' Series A round and has continued to back the company through Series B, C, and D.

In recent years, YQN Logistics has focused on building out its international transportation network and advancing its digital technology capabilities. On the network side, the platform now offers not only ocean freight but also air, rail, and cross-border e-commerce logistics, plus origin and destination services including trucking, customs brokerage, and warehousing. This has created a "China to Global" cross-border transportation network covering over 95% of global shipping routes, enabling diversified, end-to-end international logistics services for clients.

On the technology front, YQN Logistics has integrated various transportation resources to enable rapid online booking of international freight — as straightforward as booking a flight. By connecting data nodes across shipping lines, ports, trucking providers, warehouses, and customs brokers, customers can track every shipment's progress just like tracking a domestic package. Additionally, the company has built a powerful intelligent operating system using AI and big data, replacing manual processes with an automated model powered by email recognition, OCR, NLP, RPA, and industry knowledge graphs. This has boosted operational efficiency by several orders of magnitude while significantly reducing error rates and improving the customer experience.

Following this funding round, YQN Logistics will accelerate overseas network expansion and the application of new digital technologies in international logistics. The company has already established logistics nodes in Mexico, Brazil, Japan, the United States, Vietnam, Thailand, Singapore, and other countries. Over the next one to two years, it plans to add several dozen more nodes in major markets worldwide. Leveraging its proprietary digital systems, YQN Logistics will connect these point-to-point overseas locations into a cohesive network, extending its existing "China to Global" coverage into a truly "Global to Global" transportation network. On the technology side, the company will deepen its use of blockchain, big data, and other technologies to develop new features such as price prediction and capacity forecasting, helping enterprises make better decisions around cross-border logistics.

Also on May 25, YQN Logistics co-hosted the 2021 New International Logistics Ecosystem Summit, titled "Navigating the Future," alongside the National Transportation and Logistics Public Information Platform, the National Waterway Transportation Information Service Platform, and the Shanghai International Shipping Center Development Promotion Association. According to the International Logistics Industry Digitalization Development Report released at the event, post-pandemic international trade will see opportunities in regional integration and cross-border e-commerce, while international logistics will accelerate its digital transformation along four trends: universal digital services, ecosystem-based digital development, integrated service offerings, and online-offline convergence. Industry-wide consensus has emerged on the comprehensive adoption of digital logistics — 76.93% of industry practitioners believe digital technologies and services will achieve broad application and penetration within five years at most.

At the summit, YQN Logistics also signed a memorandum of cooperation with the China Transport Telecommunications and Information Center and Shanghai Maritime University. The three parties will collaborate across product development, technology, and talent to further advance digitalization and informatization in international logistics. "The international logistics industry is entering a VUCA era, and digital technology is one of the most effective tools for managing this uncertainty. Going forward, we will open our technologies and capabilities to the broader industry, empowering upstream and downstream enterprises and accelerating the sector's evolution toward intelligent operations," said Zhou Shihao, founder and CEO of YQN Logistics.

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