(Yicai Global) April 27 -- Chinese bakery Guangxi Xuanma Food has secured over CNY100 million (USD15.4 million) in its latest fundraising round, led by existing shareholder Jinding Capital, tech media 36Kr reported today.
The proceeds from the Series B financing will be used in new plants, products and channels as well as to upgrade and digitalize existing facilities, it said.
Jinding Capital is a firm believer in China’s baked goods sector. Last September the Beijing-based venture capital company led a funding round worth tens of millions of Chinese yuan, equivalent to millions of US dollars, in Xuanma.
Xuanma, which is most well-known for its egg-yolk puffs, sells as much as 75 percent of its products online. Last year, some pastries started to appear in the brick-and-mortar stores of Alibaba Group Holding's grocery shops Hema Fresh, Japanese convenience stores FamilyMart and the US’ members-only warehouse chain Sam's Club.
The Nanning, Guangxi Zhuang Autonomous Region-based food firm posted revenue of CNY500 million (USD77 million) in 2020. Xuanma owns two factories in Nanning and Jiaxing in southeastern Zhejiang province.
It is planning another 10,000-square-meter plant in Nanning’s science and technology industrial park, founder Wei Fuxian said earlier. The new factory will be able to produce 300,000 boxes a day and should start operating in June.
Editor: Kim Taylor