Huishoubao Closes Industry's Largest Series B Round of 300 Million Yuan, with Existing Investor Source Code Capital Continuing Its Support
This round was led by Cross Strait Capital, with participation from Source Code Capital, Chengwei Capital, CITIC Capital, and SMC Capital.
Shenzhen-based Huishoubao Technology Co., Ltd. (hereinafter referred to as Huishoubao), which focuses on China's secondhand smartphone recycling market, completed a RMB 300 million Series B round in September 2017 — the largest financing round in the phone recycling industry to date. Prior to this, Huishoubao had already secured the industry's largest angel round and largest Series A round.
This round was led by Strait Capital, with Source Code Capital, Chengwei Capital, CITIC Capital, and SMC following on. Smartphone recycling represents a market worth hundreds of billions of RMB in China alone. Currently, two main models dominate the space: C2B, represented by professional secondhand phone recycling platforms like Huishoubao; and C2C, represented by idle goods trading platforms like Idle Fish and Zhuanzhuan. The two models both serve different user needs and maintain overlapping cooperative relationships.
Founded in 2014, Huishoubao is a leading domestic platform for phone and digital device recycling, as well as a representative enterprise of the "Internet + Environmental Protection" model. Upholding the corporate philosophy of "Returning Value to Idle Goods," Huishoubao has established long-term strategic partnerships with Huawei, vivo, China Mobile, China Unicom, China Telecom Group Co., Ltd., Yingyongbao, Weihuishou, and Aifengpai, among other well-known enterprises.
In terms of recycling methods, Huishoubao is committed to enabling users to complete phone recycling quickly and conveniently, offering two options: mail-in recycling and door-to-door pickup. Users can choose whichever is most convenient. For mail-in recycling, Huishoubao provides two-way free shipping — meaning even if a user decides to cancel the recycling order, no fees are incurred throughout the entire transaction. Door-to-door pickup offers a face-to-face transaction for a better service experience.
Huishoubao leverages powerful big-data intelligent algorithms to provide users with precise price estimates. For mail-in recycling, Huishoubao promises to complete payment within 24 hours of receiving the phone, and thoroughly clears all phone data through professional techniques to protect user data security.
Offline, Huishoubao established an independent sub-brand, "Huanjixia," partnering with full-channel phone retail stores to jointly launch trade-in services. Huanjixia provides partner stores with a complete technical solution and standardized service process, significantly enhancing their comprehensive service capabilities. With very simple operational training, store sales associates can use the "Huanjixia" intelligent inspection app to provide users with standardized phone recycling services. With over 300,000 offline phone retail stores accounting for nearly 80% of total phone sales volume, offline has become one of the most important battlegrounds in the phone recycling industry.
Beyond recycling services, Huishoubao also sells certified secondhand phones. In this sales loop, Huishoubao has built an industry benchmark for certified secondhand goods with solid product quality, standardized service, and low return rates. In addition to its own direct sales channels, Huishoubao is also a partner to major domestic certified secondhand phone sales platforms. The certified secondhand goods operation meets user demand while further contributing to Huishoubao's overall gross margin.
Huishoubao has been actively expanding into the phone aftermarket, and in June 2017 made a strategic Series A investment in Shanxiuxia, China's largest phone repair O2O platform. According to sources, the two parties' cooperation has already launched in select cities and will expand to 20 major cities within Shanxiuxia's coverage area by year-end.
Huishoubao CEO Fan He holds a master's degree from The Chinese University of Hong Kong and has spent years focused on supply chain management in the ICT industry, making him a domestic supply chain expert. In 2005, he co-founded Shenzhen Prolto Supply Chain Management Co., Ltd., which went public in 2015 (stock code: 002769). Huishoubao is his second entrepreneurial venture.
Co-founders Xiaoya Li and Fei Ye worked together at Tencent for many years, bringing extensive experience in product, operations, and R&D. Xiaoya Li was also named to Forbes' "30 Under 30" list in 2017. SVP Zhou Xiong hails from Alibaba's renowned "China Supply Iron Army" sales team, with expertise in strategic planning and team management. Other senior executives also come from top-tier internet companies or have rich entrepreneurial experience.
According to sources, this round of funding will be primarily used to recruit top talent; significantly strengthen Huishoubao's B2C brand promotion to raise consumer awareness and capture greater market share; and simultaneously expand partnerships with more phone brands, e-commerce giants, and other scenarios to develop innovative models.
Beyond solidifying foundational work, the company will also lay groundwork for innovation and make strategic investments in other secondhand-related businesses with synergistic effects, building a comprehensive secondhand recycling platform that turns waste into treasure and returns value to idle goods!
More Recent Funding News
ErGeng Closes RMB 100 Million Series B+ Round, Source Code Capital Backs Short Video Leader
Cijinrong Announces RMB 65 Million Series A Round, Led by Source Code Capital
Create Enduring Real Value
Create Enduring Real Value
Long press to scan QR code and follow Source Code Capital