Textile B2B platform Baibu announced the completion of a $100 million Series C2 funding round, with existing investor Source Code Capital continuing to increase its stake.

源码资本·November 21, 2018·0·0

Source Code Capital portfolio company Baibu, a B2B textile platform, announced the completion of a $100 million Series C2 funding round led by Tiger Global Management, with follow-on investments from existing shareholders Source Code Capital, Chengwei Capital, Yunqi Capital, and Xiongniu Capital. Chongying Capital continued to serve as the exclusive financial advisor for this round.

The new funding will be used to build an intelligent, transparent, and standardized service system for a new and efficient fabric and accessories supply chain, better serving every enterprise in the apparel industry.

As a board member, Xingchen Zhang of Source Code Capital stated that Baibu has established a commanding lead in the B2B textile sector and is well-positioned to capitalize on the major trends shaping the trillion-yuan apparel supply chain and industrial internet. Source Code Capital was the sole investor in Baibu's angel and pre-Series A rounds, consistently believing in and supporting the company through its most difficult periods, and has increased its investment in every subsequent round. Source Code Capital will continue to back Baibu in becoming a $10 billion company.

Zhao Zhenhong, founder and CEO of Baibu, said: "Advancing the upgrade of the textile industry is the mission of everyone at Baibu. Following this funding round, Baibu will continue to intensify efforts in supplier partnerships, product development, warehousing infrastructure, intelligent and digital transformation of the textile industry, and empowering partners through new technologies. We aim to build a better, more efficient, transparent, and intelligent flexible supply chain service system for apparel fabrics and accessories, while expanding into more than 10 major apparel production hubs in North and Southwest China. We will establish newer and more efficient supply chain service standards in the B2B textile sector and continue to expand our already leading market share."

Zhao Zhenhong, Founder & CEO of Baibu

Wang Pengfei, Managing Director of Tiger Global Management China and lead investor in this round, said: "The textile market is a trillion-yuan market, yet after decades, the supply chain remains remarkably primitive and urgently needs digital transformation through the internet. Baibu has a clear positioning, with product intelligence and market share that are far ahead of competitors, and the team demonstrates strong strategic thinking and execution capabilities. We believe Baibu has the opportunity to deeply transform the supply chain, empower participants at every link of the textile industry chain, and serve as an excellent demonstration of how the internet can upgrade traditional industries."

Founded in April 2014, Baibu is a leading B2B textile platform whose core team members come from Alibaba, Meituan, VIP.com, Qunar, Inman, Qiushui Yiren, and other textile industry veterans. They have deep expertise in fabric production, warehousing, distribution channels, and apparel manufacturing, with access to resources across the upstream and downstream textile supply chain.

According to data from the China National Textile and Apparel Council, in 2015, China's textile enterprises generated over 10 trillion yuan in main business revenue. More than 5,000 tier-one suppliers offered nearly 3 million fabric styles, with nearly 1 million new products launched annually. Due to the vast variety of products and fragmented upstream and downstream players, apparel companies face significant difficulties in sourcing fabric — taking anywhere from two to three days to one or two weeks. Meanwhile, the prevalence of multi-tier distributors in the fabric market leads to cumulative markups of 30-60% at each level, with product quality stability often difficult to guarantee and fulfillment systems underdeveloped.

After more than four years of development, Baibu has established supply chain centers in Guangzhou and Shaoxing, with deep partnerships with over 1,000 tier-one suppliers and connections to more than 4,000 tier-one suppliers. It holds absolute advantages in quality and pricing across tens of thousands of products in multiple categories, with thousands of new styles released weekly. Baibu has also built a comprehensive fabric information database and uses image retrieval technology to quickly solve pattern matching and search problems.

Furthermore, Baibu has established intelligent warehousing systems in East China, South China, and Central China based on sales conditions and trends in various cities, enabling customers to purchase quality fabrics more conveniently and quickly. Its business has expanded to major apparel production hubs including Guangzhou, Foshan, Dongguan, Hangzhou, Huzhou, Shaoxing, Wuhan, Chengdu, Zhengzhou, and Changshu, serving more than 100,000 apparel production enterprises. Through intelligent production and production decision-making, digitized warehousing, and information-based management, Baibu empowers suppliers across the industry chain, driving the apparel industry toward greater efficiency, flexibility, transparency, standardization, and intelligence from raw materials to finished garment production.

More Funding News

Source Code Capital portfolio company Xinchao Media receives strategic investment from Baidu