Sino-Ocean Capital Leads $43M New Round In Chinese Seafood Supply Chain Operator

Xinliangji, a Beijing-based seafood supply chain operator, has raised RMB300 million (US$43.62 million) in a new round of financing led by Chinese alternative asset management firm Sino-Ocean Capital through a modern logistics-focused fund.

This is the first investment made by the modern logistics-focused fund, a private equity fund set up by Sino-Ocean in late 2018. The fund made the first closing at RMB1.6 billion (US$232.56 million) in the first half of 2019, according to a statement released by Sino-Ocean Capital on Sunday.

Returning investors Eastern Bell Capital and FreeS Fund also participated in this round.

Xinliangji, formally known as Xinliangji Food Products Technology Co Ltd, was founded in 2016 as a food supply chain platform incubated by Chinese hotpot restaurant chain Beijing Xinladao Catering Management Limited. The company focuses on the vertical management of food and beverage products, offering food production, processing, and distribution services.

Xinliangji mainly provides aquatic products, such as crawfish, fish, shrimps, crabs, and pulp drinks. The company purchases raw materials from aquaculture bases, and then processes them into seasonings in modern factories. These products are delivered to restaurants through the firm’s cold chain distribution system and third-party logistics platforms. The company now owns nine processing factories and a 200,000-mu (13.340-square-meter) aquaculture base.

Proceeds of this round will be used to expand the supply chain and improve upstream resource control capabilities.

The company raised RMB120 million (US$17.44 million) in a series A+ round led by Eastern Bell Capital with participation from FreeS Fund in July 2017. It closed RMB50 million (US$7.27 million) in a series A round led by FreeS Fund in February 2017.