Horen Carries out its Series C Round of Funding
Xiangxiang Gongyong, an intelligent logistics platform, plans to be a terminator of disposable packaging.
Horen (aka Xiangxiang Gongyong, 箱箱共用) raised hundreds of millions of Yuan in Series C on August 28, led by USChina Green Fund (中美绿色基金). The investment will bankroll R&D and cloud platform construction, further embed smart packing into users' supply chain.
Founded in 2013, Horen focuses on returnable transport packing (RTP) R&D, design and manufacturing. With Xiangxiang Gongyong, Horen has built a system that combines big data, cloud computing, and hardware manufacturing.
Before Series C round of financing, this company has raised nearly CNY 168 million; investors include Qihai Capital (七海资本) founded by Xiong Huaming, the former Tencent CTO.
As of now, Xiangxiang Gongyong has deployed nearly 200 service outlets in China, serving six major industries: bulk liquid, fresh fruits and veggies, postal delivery, flowers, cold chains, and auto components. Users can track their packages in real-time.
"The maturity of 5G and AI technology is driving the development of the Industrial Internet of Things (IIoT). There is spacious room for industrial upgrading and green investment. In this context, the traditional industry is increasingly moving towards digitalization, intelligence and financialization." said Baibo, CEO of USChina Green Fund.
Xiangxiang Gongyong could be a pioneer in the logistics industry as its digital platform not only perform real-time data management and intelligent leasing operations but also reduce resource consumption and environmental pollution by recycling. However, challenges still exist, one of which is high one-time spending. As the packing boxes are returnable, their prices and maintenance fee will be costlier than disposable ones; accordingly, higher investment of appropriate infrastructure and control systems are necessary.
According to one latest market research report by Technavio, the global RTP market is expected to see a CAGR of nearly 8% during the period from 2019 to 2023. Packaging could be a new type of intelligent terminal, which runs through all processes of the supply chain and can efficiently acquire and store data. Those data is one of the key foundations of AI technology, might contribute to building a collaborative supply chain.