A Chinese food supply chain company, Xinliangji (信良记), closed its Series B round of funding on July 20, with an amount as much as CNY 300 million (about USD 43.61 million), led by Sino-Ocean Capital (远洋资本), followed by FreesFund (峰瑞资本) and Eastern Bell VC(钟鼎创投).
According to Li Jian (李剑), founder and CEO of the company, the money raised would be spent on further construction of supply chains and on the control of upstream raw materials.
Founded in 2016, Xinliangji closed its Series Pre-A and A rounds of funding in the following year. FreesFund and Eastern Bell VC participated both in these two rounds of financing.
For now, Xinliangji possesses over 133 square kilometers of aquaculture farms and 5 food processing factories in China, according to the company’s website.
The Beijing-based standardized food supplier was incubated in Xinladao (新辣道), which is a famous fish hotpot brand founded also by Li Jian. Xinliangji provides primarily processed or semi-processed pickled fish, hairy crabs and crayfish to restaurants. In the meantime, it sells directly dishes to consumers as well.
The company’s star product, crayfish, has long been popular in the Chinese midnight snack market, especially in summer nights. According to Meituan (美团), a consumer services provider in China, Chinese people ordered up to 45000 tons of crayfish in Meituan’s own food delivery platform last year.
As the nocturnal economy booms in China, the midnight snack industry is likely to grow at a corresponding speed.