Going against the wind! Why can this cross-border company raise 700 million yuan? !

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Last year was a cold winter when cross-border sellers and capital collectively broke up. There were the sky-high claims made by Jiazhilian and Xunxing, and China-Czech Resources' abandonment of the acquisition of Banggood Technology ( you can click on the relevant link to review ).

We have previously analyzed the reasons why capital is reluctant to invest in cross-border sales. Basically, they are due to inventory backlogs and capital flow problems in the distribution routes. These two factors make the size of cross-border giants look large, but they are actually bloated . In fact, the capital flow is very unhealthy . Once capital has an in-depth understanding, it will find it difficult to profit from it .

But yesterday, another cross-border enterprise went against the wind and announced that it had completed a round B financing of up to 700 million yuan when the entire cross-border industry was not favored by capital!

This cross-border company that goes against the wind is Fujian Zong Teng Network Co., Ltd. (hereinafter referred to as "Zong Teng"), which was established in Fuzhou in 2007 and is one of the earliest companies in China to engage in cross-border e-commerce business.

The categories that Zongteng is currently involved in include electronic accessories, household items, children's toys, clothing, cosmetics , etc. In addition to owning multiple stores on large e-commerce platforms such as eBay, Amazon, and AliExpress, it also operates its own B2C mall (www.tmart.com) .

▲The many subsidiaries of Zongteng Group (data from Tianyancha)

Familiar business categories, familiar e-commerce platforms and self-built websites, all of which seem to be no different from the above-mentioned listed companies? Now I want to tell you the big differences between Zongteng and the above-mentioned companies.

In addition to these e-commerce businesses, Zong Teng also operates its own logistics and warehousing business . The pace of its logistics business is even faster and further than that of e-commerce. The logistics business open to the outside world has now grown into a well-known professional logistics and warehousing service provider in the industry!

Zongteng owns service brands such as "Barn" and "Yuntu" . Its main businesses currently include cross-border e-commerce overseas warehouses , dedicated cross-border logistics , and various related value-added services.

Even before the completion of the B round of financing, Zongteng already had nearly 60 overseas warehouses and transit hubs with a total area of ​​more than 400,000 square meters, and thousands of overseas Zongteng employees handled more than 500,000 orders every day . It is an absolute cross-border logistics giant.

▲The picture shows government staff visiting Zongteng’s overseas warehouse in the Czech Republic

Thanks to its extremely powerful self-operated logistics business, Zong Teng has better warehousing inventory and capital turnover rate than the above-mentioned listed big sellers.

Combining the success of ZongTeng with the unhappy partings between several other big sellers and capital, a cross-border e-commerce giant that simply sells goods will find it difficult to support the expectations of capital. Coupled with inventory and capital issues, it will become increasingly difficult for these cross-border companies to go further.

In the future, the cross-border giants that can successfully cross this threshold will be comprehensive e-commerce companies like Zongteng that carry out multiple cross-border businesses. Various derivative businesses (such as payment and logistics) can complement and develop in parallel with the main sales business. What is the effect of this? Zongteng's investors have already given the answer with 700 million yuan.

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Source: Cross-border Business School

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