Today, Yungehuo (运个货) announced it raised hundreds of millions of yuan in a Series A round co-led by Legend Capital (君联资本), and existing investors ZhenFund (真格基金) and Cowin Capital (同创伟业). According to the company's executives, the capital received will be mostly used to accelerating market expansion.
Founded last year, Yungehuo is headquartered in Shenzhen. It provides Chinese companies from multiple industry verticals with logistics and transportation services. The core business is built around door-to-door intermodal shipping solutions for domestic enterprises.
Previously, the company has carried out three funding events. It gained USD 1.44 million from angel investor QF Capital (启赋资本) in October 2018, followed by a USD 2 million seed-financing round led by ZhenFund last November. Later on, in February 2019, the firm received tens of millions of yuan in a pre-Series A round led by Cowin Capital and, again, ZhenFund.
After 15 months of operating, the firm has reached a significant scale. According to people with knowledge of the matter, the operating income generated within this period has exceeded CNY 100 million (USD 12.75 million). The company has shipped over 40,000 TEU to date and now possesses a wide network of over 10,000 truck drivers across the country.
Despite the latest trade tensions, investors have a quite high opinion of China's cargo upstarts. For one, two months ago, logistics supermarket Yunquna made a bundle in its Series C round of financing, raising USD 70 million from Sequoia Capital China and some other prominent venture capital organizations.
External risks of various kinds still exist and frighten investors. Yungehuo, on the contrary, may even benefit from the accruing global uncertainties as the firm targets China's domestic market.