"ZNLH" announced the completion of a $50 million Series B funding round, led by Source Code Capital.

源码资本·April 2, 2019·0·0

On April 2, 2019, ZNLH Digital Technology Co., Ltd. (hereinafter referred to as "ZNLH") announced that it had completed a $50 million Series B funding round, led by Source Code Capital, with existing investor Buhuo Ventures also participating.

On April 2, 2019, ZNLH Digital Technology Co., Ltd. (hereinafter referred to as "ZNLH") announced the completion of its $50 million Series B funding round, led by Source Code Capital with follow-on investment from existing investor Buhuo Ventures, which had previously backed the company's Series A.

Founded in 2016, ZNLH is a B2B company focused on construction equipment services. It has established strategic partnerships with leading domestic and international equipment manufacturers, including JLG (United States), Lingong Heavy Machinery, and Haulotte (France), covering a wide range of categories such as scissor lifts, straight boom lifts, articulating boom lifts, and spider lifts. With a fleet approaching 10,000 units and growth rates that lead the industry, the company meets construction needs across building engineering, industrial, and commercial sectors.

ZNLH founder and CEO Tianli Yang stated, "Source Code Capital leading this round, with Buhuo Ventures continuing to invest, reflects their confidence in ZNLH's team and business model. This will draw more talent and capital attention to the 'construction equipment' sector — a trillion-yuan industrial internet market. ZNLH is committed to providing customers with safe, efficient, and cost-effective one-stop solutions and service guarantees, building China's version of United Rentals (NYSE: URI)."

ZNLH Founder & CEO Tianli Yang

As a comprehensive construction equipment service provider integrating technology, data, and platform capabilities, ZNLH has since its founding adhered to technology-enabled industry transformation, data-driven operations, and the use of internet technology to upgrade the traditional construction equipment sector and restructure its supply chain.

Specifically, technology-enabled industry transformation refers to digital operations systems, online customer-facing transactions, and IoT-based full lifecycle equipment management — helping the traditional construction equipment industry move away from high-cost, low-efficiency operating models, improving customer interaction capabilities, and elevating service quality and efficiency across the industry chain.

Data-driven operations means leveraging big data on the industry, market, customers, projects, transactions, and equipment to optimize management of people, finances, and resources through intelligent algorithms, reducing operating costs, equipping stores with standardized and replicable sales and service capabilities, supporting ZNLH's rapid expansion while ensuring personnel stability and efficiency gains during high-speed growth.

Restructuring the industry supply chain involves reconfiguring services, warehousing, and logistics, optimizing warehouse layouts, and centralizing procurement of complete machines and parts to effectively control costs, meet diverse market demands, and ensure stable fulfillment quality.

Xingshi Wang of Source Code Capital said, "ZNLH is a representative enterprise with unique value in the industrial internet space. They have used advanced technology to restructure the distribution and aftermarket of construction machinery. ZNLH has fully digitalized its equipment, sales, and services. Through data-driven operations, every decision at ZNLH is more scientific and efficient. Based on data analysis and application, ZNLH's equipment lifecycle management and asset securitization capabilities have reached industry-leading levels. Source Code Capital believes that as construction machinery — represented by aerial work platforms — becomes increasingly widespread, ZNLH will become a globally leading construction machinery service platform."

Jiayu Yi of Buhuo Ventures commented, "ZNLH's team possesses a hybrid DNA of internet technology and construction machinery. They have effectively used technology to reduce the sector's dependence on human labor, and have demonstrated exceptional management capabilities in replication and expansion. We hope ZNLH will become a technology-driven platform that significantly empowers upstream and downstream enterprises and improves overall industry operational efficiency."

Currently, ZNLH operates a fleet approaching 10,000 units and has established a nationwide marketing network, warehousing and logistics infrastructure, and service guarantee system across 33 cities in 22 provinces, having cumulatively served over 10,000 customers.

In addition, in March 2018, ZNLH reached a 250 million yuan strategic financing cooperation with Huayun Financial Leasing; in June 2018, it signed a 200 million yuan industry-record order with Huayun Financial Leasing and Lingong Heavy Machinery; in July 2018, it received tens of millions of yuan in Pre-A funding from Shengjinda Capital; and in September 2018, it closed a 62.5 million yuan Series A round led by Buhuo Ventures.

This means that in just half a year, ZNLH completed three funding rounds, setting another industry development record. ZNLH has not only created what its people proudly call the "ZNLH Miracle," but has also delivered to the industry the distinctive "ZNLH Speed" and "ZNLH Phenomenon."

Entering 2019, with increasing macroeconomic uncertainty and the construction equipment sector entering an adjustment period, all industry participants face both opportunities and challenges. For ZNLH, which has already secured its business model, capital, talent, and geographic layout, the opportunities outweigh the challenges.

In the coming battle for market position, beyond its core competitive advantage of data-driven services, ZNLH has also secured strong support from leading industry suppliers and customers, including JLG (United States), Lingong Heavy Machinery, Haulotte (France), Hunan Sinoboom, China State Construction Engineering, China Railway Construction, Power Construction Corporation of China, and China Communications Construction. These will serve as powerful pillars for ZNLH's healthy and stable future development.

As the construction equipment industry gains "acceleration," ZNLH — now in the first tier — is willing to assume greater social responsibility, creating value for customers and delivering differentiated service experiences. ZNLH CEO Tianli Yang has publicly stated his commitment to working with peers to build a healthy competitive ecosystem and promote the industry's sound development.

What ZNLH is doing is not merely connecting one link, but digitally transforming the entire industry chain; not merely connecting information, but delivering tangible efficiency gains; not merely serving as a transaction platform, but providing deep empowerment and services.

Among hundreds of boats racing, the one that rows hardest leads. For ZNLH, the Series B funding provides "acceleration" for future development, bringing it a major step closer to becoming "the world's leading B2B service platform for construction equipment." Going forward, ZNLH will continue to leverage cutting-edge technologies including big data, artificial intelligence, and IoT to drive industrial upgrading, working with upstream and downstream partners across the industry chain to build a new ecosystem for the construction equipment sector.

About ZNLH

ZNLH Digital Technology Co., Ltd. (hereinafter referred to as "ZNLH"), founded in 2016 and headquartered in Nanjing, is committed to becoming the world's leading B2B service platform for construction equipment. Leveraging cutting-edge technologies including big data, artificial intelligence, and IoT, ZNLH has built a new smart industrial ecosystem and intelligent construction site scenarios, leading industry transformation. Currently, ZNLH has established a nationwide marketing network, warehousing and logistics infrastructure, and service guarantee system across 33 cities in 22 provinces, providing customers with safe, efficient, and cost-effective one-stop equipment rental solutions and service guarantees, having cumulatively served over 10,000 customers. The company has pioneered a data-driven, online-offline integrated, customer-goods-warehouse coordinated operations management system in the industry, demonstrating an "industry + internet" model in the construction equipment sector. Through its comprehensive open platform strategy, ZNLH is expanding its leading position in the construction equipment rental market, diversifying revenue streams, and launching its globalization process.