Dongfang Honghu Bags A-Round Financing From Source Code Capital
Digital consumer brands company Dongfang Honghu on Wednesday announced its completion of an A round of financing worth tens of millions of dollars. The round featured exclusive investment from Source Code Capital, with Lighthouse Capital acting as the financial consultant. Not long ago, Dongfang Honghu secured angel-round financing from ByteDance.
Previously, Dongfang Honghu jointly developed a hot selling tea product named Heliangcha (黑凉茶 Hēi Liángchá) with Wong Lo Kat, a famous Chinese herbal tea brand. Then, in September last year, it released a new brand called Nezha Sparkling Water.
Dongfang Honghu specializes in bringing the internet to the soft drink industry, improving the operational efficiency of traditional offline channels by upgrading self-developed systems. For example, it visualizes consumption data through QR codes, which can help dealers save most of the transaction process and reach stores directly, thus reducing inventory risks and speeding up the circulation of goods. The cost saved in the intermediate links will also be invested in R&D to provide consumers with better products and experiences.
In addition to digitalization at the channel level, the company also plans to realize digital transformation of the soft drink industry. With the QR code on the product, a direct communication channel is formed between the company and the consumers. The company explained, “We can know who the consumers are, and consumers can give feedback with their opinions on the products and help us better develop operation.”
At present, Dongfang Honghu has applied the digital model to different scenarios, and finally obtained the optimal model through digital promotion and product development, channel operation, marketing management and even logistics distribution.
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Next, Dongfang Honghu will implement its digital system within more application scenarios, and will continue to strengthen its reserve of technical talent. At present, Dongfang Honghu has a team of nearly 1,000 people, and the proportion of technical personnel is relatively high.
After the completion of A-round financing, Dongfang Honghu will accelerate R&D of products, digital systems, brand building, channel expansion, further explorations of the market, the promotion of user operations and strengthening team building.