Shenzhen-based cross-border logistics platform Kuajinghaoyun (KJHY) secured millions of yuan in a Series A financing round from investors including Temasek subsidiary Pavilion Capital as well as existing shareholders. The company provides international logistics support to mainly small e-commerce merchants engaged in cross-border business by matching them with shipping companies.
So far, KJHY has 1,000 logistics partners on its platform, helping more than 36,000 small businesses in China ship their products to overseas customers. Merchants only need to enter the type and quantity of goods, along with the delivery time, and they can choose from a variety of couriers.
The capital raised will go toward improving KJHY’s platform, providing more cross-border logistics routes for small and medium-sized e-commerce merchants, and boosting decision-making and logistics efficiency.
China’s mature e-commerce and manufacturing industries have empowered the country’s logistics sector to develop localized advantages over global competitors, and KJHY is now exporting this expertise into overseas markets where the demand for Chinese consumer goods has been growing, a company representative told 36Kr. The pandemic has restricted the flow of goods transported across borders by “daigou” channels, where shoppers smuggle goods from abroad into China, boosting demand for legitimate cross-border shipping options.
Currently, the B2C cross-border logistics market is underdeveloped in China, and most small businesses do not possess the capacity to ship goods internationally. This is where KJHY is making a difference, by enabling small businesses to access affordable international shipping solutions. Emboldened by a promising market, the company expects the number of sellers on its platform to reach 300,000 by the end of this year.
KJHY provides a closed-loop service system, including after-sales services to make the shipping process more transparent for merchants. Its digital systems catalog transaction information and history, building up data on logistics providers and merchants to create trust on the platform.
“For major customers, building their own cross-border logistics service system is the mainstream choice in the industry, but for small and medium-sized businesses, outsourcing logistics is the best way to export products at this stage of their development,” KJHY’s representative said.
The platform mostly facilitates the shipping of products to North America and Europe, the company said, and it will focus on building its own logistics and warehouse infrastructure to supplement logistics partners and give sellers more choices going forward. KJHY’s current route network covers Europe, the United States, Japan, and Southeast Asia. It is making inroads into South America, the Middle East, and Russia.
36Kr Connection features translated and adapted content published by 36Kr. This article was originally written by Liu Shiwu for 36Kr.