China digest: Auto parts supplier Mancando bags $57m; IoT chip developer XINYI raises $28m

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Huaxing Growth Capital Fund has led a Series B funding round of nearly 400 million yuan ($57 million) in B2B auto parts supplier Mancando, while Internet of Things (IoT) chip maker XINYI Information Technology has raised nearly 200 million yuan ($28 million) in a Series A+ round of financing.

New Economy Fund leads $57m round in Mancando

Chinese B2B auto parts supplier Mancando on Wednesday announced the completion of a nearly 400 million yuan ($57 million) Series B round of financing led by China Renaissance’s Huaxing Growth Capital Fund.

Chinese TMT-focused venture capital firm Xiang He Capital; Oriza Fund of Funds (FOFs), an investment platform of state-backed Oriza Holdings; and Axiom Asia, a fund manager that invests in the Asia Pacific region, participated in the new round, according to a statement.

Founded in August 2015 and formally known as Guangdong Santou Liubi Information Technology, Mancando uses big data and mobile internet to build a B2B industrial internet platform for the distribution of auto parts. The company selects auto parts from global manufacturers and lists them on its online platform for over 2,200 franchised shops across 31 provinces and regions in China.

These franchised shops can then purchase and replenish stocks through an online platform, track sales volumes and profits, and adjust their inventories based on market demand data shared by Mancando, among others.

Proceeds of the Series B round will be used to increase auto part offerings, expand the company’s warehousing facilities, and upgrade its big data capabilities, per its statement.

The Series B round took the total capital raised by the startup to more than 800 million yuan ($113 million). In September 2019, Mancando completed a Series A+ round at nearly 200 million yuan ($28 million) led by Legend Capital, the venture capital arm of China’s Legend Holdings.

The company had secured 170 million yuan ($23.95 million) in a Series A round from Legend Capital and Chinese supply chain-focused investment fund Eastern Bell Capital in February 2019.

IoT chip developer XINYI raises nearly $28m in Series A+ round

Chinese IoT chip maker XINYI Information Technology has raised nearly 200 million yuan ($28 million) in a Series A+ round of financing led by the country’s semiconductor-focused private equity firm CTC Capital.

Chinese private equity firm Sinowisdom Capital and XINYI’s existing investors, including early-stage venture capital firm FreesFund, Hangzhou-based investment firm Orient Jiafu Asset Management, and China’s Septwolves Venture Capital, participated in the latest financing, said CTC Capital in a WeChat post on Wednesday.

Shanghai-based XINYI focuses on the R&D and commercialisation of Narrow Band IoT (NB-IoT) chips based on low power wide area (LPWA) technology that can enable a wide range of cellular devices, system capacity and spectrum efficiency, especially in deep coverage.

The technology, which recorded cumulative NB-IoT connections of about 95 million in China at the end of 2019, is poised to see its adoption in the country accelerate through 2022 and reach nearly 400 million at a CAGR of 150 per cent between 2017 and 2022, according to a Counterpoint report in April this year.

XINYI will invest the proceeds in technology R&D and market expansion and accelerating the development and commercialisation of its new-generation NB-IoT products, among others.

The startup completed a total of three funding rounds before the new investment, including the completion of a Series A round worth tens of millions of yuan in October 2018.

Its previous round was backed by Septwolves Venture Capital, Orient Jiafu Asset Management and Bondshine Capital, an investment unit of Chinese government-linked Jiangsu Govtor Capital Group.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.