Tiandihui seeks fresh funds to expand to supply chain finance
The online road transportation operator says the transaction value for 2017 is likely to hit 120 billion yuan, doubling last year’s number
Shanghai Tiandihui Supply Chain Management, the mainland’s largest online road transportation operator, is looking to raise fresh capital to expand into supply chain finance, becoming the latest logistics player to tap into the lucrative business.
Xu Shuibo, founder and chief executive of Tiandihui, told the South China Morning Post that the third round of financing would help the company create a complete chain of business in the logistics industry. He added that they would give priority in risk management when diversifying into financial services.
“The proceeds from the fundraising will be used to boost our capital base to support the finance business,” he said. “China’s fragmented logistics sector has to be integrated and developed to buoy the national economy.”
Xu would not disclose the size of funds Tiandihui aims to net.
Shanghai-based Tiandihui has reported soaring growth for its online platform which matches trucks with cargo, and connects more than 50 cities across the mainland, since its establishment four years ago.
In 2016, the platform handled more than 64 billion yuan (US$950 million) worth of transactions, more than four times of the amount for the previous year.