Source Code Capital portfolio company YQN Logistics announced the completion of a $70 million Series C funding round, with existing shareholder Source Code Capital continuing to increase its stake.

源码资本·June 11, 2019·0·0

On June 11, YQN Logistics, a leading domestic one-stop international logistics online service platform in China, officially announced the completion of a new $70 million Series C funding round — the largest single round of financing in China's shipping technology sector to date. This round was co-led by HSG and Coatue, with follow-on investment from Series A investor Source Code Capital, and investment bank Multifold Capital serving as exclusive financial advisor. Since November 2018, in roughly six months, YQN...

On June 11, YQN Logistics, a leading domestic one-stop international logistics online service platform, officially announced the completion of a new $70 million Series C round — the largest single funding round in China's shipping technology sector to date. The round was co-led by HSG and Coatue, with Source Code Capital, an existing Series A investor, participating again. Multiway Capital served as the exclusive financial advisor. Since November 2018, YQN has completed three funding rounds in roughly six months, becoming the first company in China's shipping technology sector to reach Series C.

As a world-leading venture capital firm, Sequoia has previously invested in numerous express and logistics companies including ZTO Express, Full Truck Alliance, JD.com, Lalamove, Kuayue Express, Debang, ANE Logistics, Dada Nexus, Zhongtong Express, Yunniao, and Fast Rabbit. This investment in YQN marks Sequoia's first foray into cross-border logistics, demonstrating its confidence in the future growth of this trillion-dollar market.

Shihao Zhou, Founder & CEO of YQN Logistics

"We hope to use new digital tools to transform traditional, cumbersome, and inefficient cross-border logistics services into something as convenient and easy to use as a smart power grid, helping Chinese companies better expand into international markets. Unlike some emerging overseas digital freight forwarders, we position ourselves as connectors for the industry — more efficiently linking offline logistics resources and using technology to empower both upstream and downstream players," said Shihao Zhou, Founder & CEO of YQN Logistics.

According to reports, YQN has already connected data nodes including ports, shipping lines, warehouses, and trucking through its big data system, achieving end-to-end logistics visibility from origin to destination. The platform provides one-stop international logistics services covering ocean freight, air freight, land transport, warehousing, customs declaration, and insurance. For businesses, the YQN platform enables online quoting, online booking, and online shipment tracking, improving supply chain agility and reliability and making international logistics as efficient as sending and receiving packages.

Image source: YQN Logistics

Following this round, YQN will focus on upgrading its overseas network and logistics concierge system. On the overseas network front, the company expects to establish branches and overseas warehouse resources in Japan, Vietnam, Thailand, Djibouti, the United States, and other countries this year, achieving seamless integration between domestic and international logistics networks and providing end-to-end cross-border logistics services.

For its logistics concierge system, beyond the already-implemented real-time shipment tracking and transport risk alerts, YQN will leverage AI, big data, and cloud computing to add new capabilities such as intelligent order fulfillment and route optimization, helping enterprises rapidly improve logistics management efficiency. At the same time, YQN will open these technical capabilities to upstream and downstream partners to build a digital shipping ecosystem.

Image source: YQN Logistics

Since its launch in 2015, YQN has cumulatively served more than 10,000 enterprises, with over 150,000 total freight rates across various shipping routes on its platform. The company expects platform cargo volume to reach 300,000 TEU in 2019. YQN has completed six funding rounds total, with investors including Source Code Capital, Coatue, DCM, HSG, China Merchants Capital, and Sumitomo Corporation Asia. The company has established strategic partnerships with multiple shipping lines and built nearly ten branches in major Chinese ports and overseas locations such as Mexico, constructing an ocean and air freight network from China to destinations worldwide. Going forward, YQN will add services including cross-border e-commerce logistics and cross-border rail transport to build a more comprehensive international multimodal transport network.

In 2019, the global shipping industry's digital transformation continued to accelerate. In February, US-based digital freight forwarder Flexport completed a $1 billion investment led by SoftBank Vision Fund, with its valuation surpassing $3.2 billion. In April, major shipping lines including Maersk, MSC, Hapag-Lloyd, and ONE joined forces to establish the Digital Container Shipping Association, aimed at promoting IT standardization in container shipping. As a domestic Chinese cross-border logistics service platform, YQN's completion of this heavyweight Series C round may signal a new wave of digital upgrading in China's cross-border logistics industry.