Chinese restaurant food supply Chain startup Guoquan announced the completion of US$50 million series B financing. This round of financing is led by IDG Capital. Other investors including VKC Partners also participated in the round. The financing will be used to optimize product supply chains, expand core market areas, run online businesses, and strengthen company teams.
Previously, Guoquan completed a round of investment of RMB45 million yuan in August 2019 and A+ round of investment of RMB50 million yuan in October 2019. Within six months, Guoquan completed three rounds of financing, with a cumulative amount of more than RMB450 million yuan.
Guoquan is a restaurant food supply chain enterprises, established in 2017. It began in the restaurant business and then moved into food supply chain for small and medium-sized restaurants. Over the past three years, more than 1,700 offline stores have been opened in China, covering 8 provinces and 3 municipalities, 104 prefecture-level cities and 667 county cities. It later began selling directly to consumers. All of its products focus on the hotpot and BBQ food supply category, one of the most popular cuisines in China.
In terms of food ingredients, Guoquan currently provides more than 400 kinds of hot pot ingredients, mainly frozen food, but also including community family needs of finished and semi-finished dishes. Its products try to overcome the challenges in this food category, which is there is no standards and no integrated supply chain channel.
Zhang Haitao, managing director of IDG Capital, said that hot pot is one of the most popular foods among Chinese people and IDG is optimistic about Guoquan’s future growth potential in supplying hot pot specialty food for Chinese families.
Wei Zhe, founding partner of KVC Partners, said that he has always been optimistic about the community fresh produce track, especially in the field of hotpot ingredients. The chain-like community small stores offered by Guoquan enables the company to expand rapidly while integrating the upstream supply chain market. At the same time, the store owner can make profits back quickly.