Baibu, a leading textile B2B eCommerce trading platform having its headquarters in Guangzhou has raised a funding of 300 M US$ in Series D round. Sources depict that it has been so far the largest funding round ever in the history of the textile industry. This round has come after a year of Series C funding of 100 M US $ which proved to be fruitful for this startup. This textile firm is providing an ERP platform and an inventory management system to assist several customers in textile procurement.
Baibu’s Plan To Use The Funds
Zhao Zhenhong, founder of this textile-based startup has given his statement regarding how they are going to use this funding. He stated that the funds will be utilized to improve the research and development of their several products and the up-gradation of the logistics as well as to improve their partnerships with various fabric production plants. Thus, Baibu has a great vision for its expansion in the future.
According to this firm, they have managed to achieve total sales of 1.4 Billion dollars.
Apart from a setback from the US-China trade war, China has earned a renowned name in the export and import of Textile products all across the world. According to China National Textile and Apparel Council, the Textile industry is about to increase its export operations by 7% in 2020. Thus it will boost the growth of leading textile players a lot.
Reason For This Huge Funding
There are several reasons which are responsible for such funding but the core reason involves the digitalization of the textile operations in China. Thus the investors have seen the potential which this opportunity can bring with it.
Loyal Investors Of Startup And New Investors
Baibu’s existing investors have a long list. It includes Source Code Capital, Tiger Global Management, Bull Capital partners, Chengwei Capital and Yunqi partners. They all participated in the funding round. On the other hand, China Renaissance served as the leading financial advisor.
Moreover, the new investors who have expressed faith in the company include DST Global and CICC Capital.
This funding round has thus opened several gates for the progress and development of this textile startup. Eventually, it will boost the growth of this firm and will help it to achieve great milestones in the textile industry.