China’s agriculture product distributor Wangjiahuan has closed an RMB400 million ($58 million) Series A round led by Singapore-based logistics solution provider Global Logistic Properties.
The investment by GLP was made through the RMB10-billion ($1.46 billion) Hidden Hill Modern Logistics Private Equity Fund which was established in May for logistics investments.
The fresh capital will be used to develop a blockchain-based food quality control platform, a big data cloud platform to collect and analyze data to improve logistics and to expand Wangjiahuan’s operations across China by building warehouse centres.
“The investment to Wangjiahuan is an important investment for GLP as it helps us to integrate the resources of our food and even logistics portfolio companies to help upgrade and complete the food service industry,” said GLP chief investment officer and Hidden Hill chairman Dong Fanghao.
Founded in 1995, Wangjiahuan is a food distributor for government agencies and institutions. The company has formed six core sections of base management, warehousing centres, logistics and distribution, central kitchen, group meal service and e-commerce.
It has over 200,000 acres of high-quality plantation through the country and has obtained the general distribution rights for more than 200 food brands nationwide. More than 500,000 tonnes of fruits and vegetables were purchased from Wangjiahuan’s upstream base on an annual basis.
Another agriculture startup Songxiaocai had also raised an RMB180 million ($26.4 million) in a Series B2 round recently. GLP was also an investor in the startup’s earlier Series B round.