On November 26, digital procurement service provider Zhenyun Technology announced the completion of a RMB 650 million ($102 million) C round of financing, led by Meituan‘s venture capital fund DragonBall Capital. ABI Capital, Unicorn Capital Partners, Xiamen C&D Emerging Industry Equity Investment and existing investors Blue Lake Capital, Redpoint Ventures China, Eastern Bell Capital, DT Capital Partners and Zcapital also participated.
Wang Pei, Chairman of Zhenyun Technology, said that after this round of financing, the company will increase its investment in four areas: global expansion, diversified product lines, wider deployment of its intelligent devices, delivery cost reduction and consulting value enhancement.
Born out of Hand Enterprise Solutions Co., Ltd., an A-share listed company, Zhenyun Technology was formally established in 2017. Zhenyun Technology launched SaaS procurement digital products, and promoted the standardization of digital procurement products through technological innovation. At the same time, the company built a brand-new service system to quickly respond to customer needs. In the first three quarters of this year, Zhenyun Technology has signed new contracts with more than 220 enterprises.
In November 2018, JD.com and Zcapital made an A round investment of 150 million yuan in Zhenyun Technology. Later, in November 2020, the B-round of financing worth RMB 300 million was led by Blue Lake Capital, followed by institutional firms such as DT Capital Partners, Redpoint Ventures China, Eastern bell Capital and Zcapital. Since 2018, Zhenyun Technology has completed three rounds of financing totaling 1.1 billion yuan.
Hu Lei, founder and managing partner of Blue Lake Capital, believes that since taking the lead in investing in Zhenyun Technology last year, the digital procurement field of Chinese enterprises has continued to grow. Enterprises increasingly hope to reduce costs and increase efficiency through transparent procurement, centralized procurement and digital procurement. The past year has seen Zhenyun Technology’s business grow very rapidly. On the one hand, it shows the vast market and the urgent needs of customers; on the other hand, it shows that Zhenyun Technology’s products being spreaded throughout the industry.