Chinese EV Delivery Services Provider DiShangTie Nets $100M Series B Round

DiShangTie, a Chinese company that leases electric vehicles for passengers and cargo transportation, announced on Monday that it has closed US$100 million in a series B round of financing from a group of blue-chip investors.

The company said it completed a US$70 million series B3 round in early 2019, which took the total capital raised in the series B round to US$100 million, said DiShangTie in a statement released on its WeChat official account.

The series B3 round was led by Jeneration Capital, a Hong Kong-based investor best known for backing technology companies, with the participation of other investment institutions including financial services provider Far East Horizon, and European investment firm Idinvest Partners.

Chinese investment bank Bojiang Capital, Japan’s Itochu Corporation, Chinese venture capital firm Qiming Venture Partners, and Matrix Partners China all poured money into the series B round.

DiShangTie, formally known as Dishangtie Car Rental Shenzhen Co. Ltd., was founded in April 2015 to lease electric vehicles for passengers and cargo transportation. The Shenzhen-based company offers truck rental, refrigerated truck rental, and other value-added services including electric vehicle charging, repairing and maintenance services. The company claimed to be the largest provider of electric vehicles in China, operating over 2,5000 electric vehicles across more than 50 first- and second-tier cities in China, such as Beijing, Shenzhen, Shanghai, and Chengdu.

The four-year-old firm has built over 3,000 electric vehicle charging stations in China. It counts a range of Chinese delivery services companies like SF Express, JD Logistics, Cainiao, and EMS among its corporate clients.

"The logistics service network of DiShangTie has covered most core cities in China since our inception four years ago," said DiShangTie founder and CEO Zhang Haiying. "We will use the proceeds of the series B round to enhance our operational efficiency, digital management, and service assurance to provide faster delivery service to customers, and improve user experience in these core cities."

DiShangTie secured RMB300 million (US$43.41 million) in a series B1 round led by Bojiang Capital in October 2018. The company also raised RMB300 million (US$43.41 million) in a series A round led by Matrix Partners China, and Qiming Venture Partners in March 2018.