Textile B2B Platform Baibu Closes $30 Million Series C1 Round, Existing Investor Source Code Capital Continues to Increase Stake

源码资本·August 29, 2018·0·0

Build a supply chain system that is "better" and "faster."

Textile B2B platform Baibu announced the completion of a $30 million Series C1 funding round, led by Bull Capital, with continued follow-on investment from Yunqi Capital, Chengwei Capital, and Source Code Capital. Chongying Capital served as the financial advisor for this round. The new funding will be used to further expand business scale and build a "better" and "faster" supply chain system to better serve every apparel enterprise.

Li Wenbo, senior partner at Bull Capital, the lead investor in this round, stated: The textile and apparel industry features long and fragmented upstream and downstream chains, low market concentration (dominated by small and medium enterprises), low efficiency, and high supply chain costs, with output value exceeding one trillion yuan. We are optimistic about Baibu's low-key yet passionate team, the value they have steadily created for customers and the supply chain over the past few years, their rapidly growing transaction volume, and recognize their leading position as a full-industry-chain fabric B2B platform.

Source Code Capital was Baibu's sole angel round investor. From angel round through Series C, Source Code Capital has continued to increase its investment, demonstrating its confidence in the company's development. Xingchen Zhang, vice president of Source Code Capital's investment team, said: "Zhenhong is one of the best entrepreneurs I have ever met. From the initial matchmaking model, to the decisive transformation to self-operated business, to the current exploration of services for wholesale merchants, he has shown tremendous entrepreneurial spirit, resilience, and curiosity. The company now faces even greater and broader development space after this funding round. Source Code Capital will continue to increase its support for such outstanding entrepreneurs."

Founded in April 2014, Baibu is a leading textile B2B platform. Its core team members come from Alibaba, Meituan, VIP.com, Qunar, Inman, Qiushui Yiren, and senior experts from the textile industry. They are well-versed in every aspect of fabric production, warehousing, distribution channels, and apparel manufacturing and sales, and command resources across the entire textile supply chain.

According to China National Textile and Apparel Council data, in 2015, national textile enterprises' main business revenue exceeded 10 trillion yuan. More than 5,000 tier-1 suppliers nationwide offered nearly 3 million fabric styles, increasing by nearly one million new releases annually. Due to the vast variety of products and fragmented upstream and downstream operations, apparel enterprises face difficulties sourcing fabric — taking anywhere from two to three days to one to two weeks. Meanwhile, fabric markets typically feature multi-level distributors, with cumulative markups of 30-60% at each layer. Product quality stability is difficult to guarantee, and the fulfillment system is underdeveloped.

After more than four years of development, Baibu has achieved profitability. It has established supply chain centers in Guangzhou and Shaoxing, formed deep partnerships with over 1,000 tier-1 suppliers, and connected with more than 4,000 tier-1 suppliers. It holds absolute quality and price advantages across 20,000+ products in 300+ categories, with over 2,000 new styles released weekly. Baibu has also built a comprehensive fabric information database, using image retrieval technology to quickly solve pattern matching and search problems. Additionally, Baibu has established warehousing systems in East China, South China, and Central China based on sales conditions and trends in various cities, enabling customers to purchase fabrics better and faster. Currently, Baibu's business scope has expanded to major apparel production hubs including Guangzhou, Foshan, Dongguan, Hangzhou, Huzhou, Shaoxing, Wuhan, Chengdu, Zhengzhou, Changshu, and Zhuzhou, serving more than 100,000 apparel production enterprises.

Zhenhong Zhao, Baibu's founder and CEO, stated that advancing the upgrading of the textile industry is the mission of everyone at Baibu. After this funding round, Baibu will continue to intensify efforts in supplier cooperation, product development, warehousing systems, and the industrial internet transformation of textiles. It will build a better and faster flexible supply chain service system, while newly expanding into more than 10 major apparel production hubs in North China and Southwest China. It will establish higher supply chain service standards in the textile B2B sector and continue to expand its already leading market share.

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