Benwei Xianwu, a Chinese brand of low-temperature meat products, announced on Wednesday that it has recently completed A-round financing totaling tens of millions of yuan. This round was led by a venture capital fund of e-commerce solutions provider Baozun, followed by its existing shareholder Xiaohongshu. The newly raised funds will continue to be used for R&D and supply chain construction.
Benwei Xianwu focuses on sausage products made with pure meat. The brand also has launched bacon and low-temperature pre-made food products. Its products are released through several digital channels including Xiaohongshu, JD.com, Douyin and offline community group buying methods. In 2021, the company’s sales exceeded 100 million yuan ($14.8 million). It plans to triple that number this year.
Benwei Xianwu previously received pre-A round investment of 10 million yuan ($1.5 million) from Xiaohongshu in October last year. Before that financing, the brand’s products had been widely recommended within Chinese social media platform Xiaohongshu. Xiao Xin, the founder of Benwei Xianwu, said that the investment of Baozun, a leading e-commerce service provider, will help the firm get all-round support in Tmall and other channels.
The firm plans to continue to make more sausage products this year, exploring chicken and beef sausage based on its pork sausage product.
Benwei Xianwu has gained some loyal users. Its products are mainly for consumers between 18 and 29, and for families. The firm’s continuous upgrading of its products helped to keep the repurchase rate as high as 30% in 2021, which has been realized on the basis of positive operating gross profit margin.