Beijing-based energy services provider Newlink Group has announced a $100 million strategic investment in the company led by CMB International (CMBI), the Hong Kong subsidiary of state-backed China Merchants Bank.
Hongtai Aplus’ sub-fund, Guodiao Hongtai Fund, entered as a new investor alongside existing backers Joy Capital — a TMT focused firm that invested in GGV Capital-backed Nice Tuan and mock meat startup STARFILED — and NIO Capital.
Newlink had closed its Series D round in July last year raising 900 million yuan ($129 million) led by CICC Capital with participation from Joy Capital, NIO Capital, and Xiaomi Corporation, besides Korea Investment Partners (KIP).
In addition, Joy Capital along with NIO Capital and KIP had seeded $110 million in Newlink’s Series C round in November 2019.
The company is also backed by National Small Medium Enterprise Development Fund, ACL Fund, Oriental Fortune Capital, and Sino Pacific Capital, among others.
China Renaissance, which had served as the financial advisor for its Series D round, facilitated the latest transaction as well.
Newlink, which started operations in 2016, operates as an energy internet of things (EIoT) platform and new retail portal with a target to provide digital energy infrastructure services by new generation technologies comprising AI, big data, and IoT.
It manages six platforms including Tuanyou, Kuaidian, Newlink Cloud, and Newlink Logistics. Tuanyou connects over 20,000 gas stations to service 400 million drivers.
Besides, Newlink has served small-to-medium-sized enterprises such as Shell Group, Tencent’s WeChat, Chinese EV charging solution provider Teld, ride-hailing player Dida Chuxing, and China Construction Bank.
Newlink is set to file for an initial public offering (IPO) in the US in the first half of 2021 with plans to raise $300-500 million, Chinese media National Business Daily reported on Friday.
China’s market size for energy service internet platforms was reckoned to reach $940 billion in 2020, according to a report by global consultancy services major Accenture in June 2016.