Guangzhou-headquartered natural yoghurt brand Simple Love has announced the completion of its 400 million yuan ($56 million) Series A round of financing led by Matrix Partners China.
The round also saw the participation of China Structural Reform Fund Corporation-backed CITIC Agri Fund, BA Capital and Maison Capital, according to a company statement.
Simple Love, the brand owned by Guangzhou Honest Dairy Company Limited, has a product pipeline comprising additives and sugar-free yoghurt.
Simple Love will allocate the proceeds to develop its upstream supply chain by integrating its factory and cattle farms.
Simple Love has currently partnered with four manufacturing factories. Its first proprietary factory in Hebei province is expected to be rolled out in January 2021. With the new project, Simple Love will achieve an annual capacity yielding a value of 2.8 billion yuan ($394 million).
Simple Love is also planning to invest in a slew of companies within 200 km radius of its factory to maximize its business.
“The size of the dairy products industry in China is huge with ultra-high temperature treated items amounting to 200 billion yuan ($28 billion) annually. The demand for fresh yoghurt products is surging in the country,” said Matrix Partners China managing partner Huadong Wang in a statement.
Simple Love competes with top yoghurt brands present in China such as Danone’s Activia, Mengniu’s Chunzhen, Bright Dairy & Food’s Momchilovtsi, Yili’s Wei-Chuan, Junlebao’s Purjoy and Kefir, Pinlive Foods’s Weidendorf.