Xiansheng Cold Chain recently announced the completion of its B+ round of funding, raising several hundred million yuan. The round was led by Shuxin Tongyuan and Ningbo Xingfeng Industrial Group, with continued investment from existing shareholder Zhixin Jianyuan. This new financing follows the company’s B round in 2022, further solidifying its status as a cold chain logistics unicorn. With this round, Xiansheng Cold Chain’s total B-series funding has reached nearly 900 million yuan, marking the largest single-round financing in China’s cold chain logistics industry.
Cold Chain Logistics: Driving Growth Through Multiple Factors
China’s cold chain logistics industry has been growing rapidly, driven by rising disposable incomes and shifting consumption patterns. According to the 2024 China Cold Chain Logistics Development Report released by the China Federation of Logistics and Purchasing on June 28, 2024, the market size of China’s cold chain sector reached $73.3 billion in 2023, accounting for approximately 25% of the global market.
Government policies have also created a favorable environment for the industry’s growth by promoting high-quality development of cold chain infrastructure and services. The fragmented competitive landscape of the domestic market is expected to consolidate, with technology-driven leaders taking a dominant position.
Xiansheng Cold Chain: A Technology Leader in Cold Chain Logistics
1. Comprehensive Digital Transformation for Cold Chain Logistics
Xiansheng Cold Chain leverages cutting-edge technology to deliver end-to-end digital solutions:
- AI-Powered Smart Dispatching:
The AI dispatch system optimizes vehicle selection from a pool of 300,000 trucks using algorithms that consider nearby vehicles, historical routes, and return trips. This enables instant vehicle matching and precise pricing, addressing common issues like seasonal demand fluctuations and pricing instability. - AI-SOP Operations Model:
AI is embedded into standard operating procedures (SOPs), automating tasks such as order distribution, route planning, and anomaly detection. This streamlines complex operations and mitigates the industry’s reliance on highly experienced personnel. 
- AI Risk Control Platform:
The platform applies a three-tiered risk control model to over 160 risk points in the supply chain, ensuring data accuracy for order fulfillment and settlement. The process, from goods receipt to settlement, is completed within one hour, significantly improving efficiency. - Smart Supply Chain Control Tower:
A real-time digital dashboard provides visibility into key performance indicators (KPIs) such as delivery timeliness and temperature compliance. This ensures safe and efficient transportation with full traceability, improving service quality and customer satisfaction.
To date, Xiansheng Cold Chain has processed over 30 billion data points, implemented AI upgrades at more than 100 nodes, and secured 80+ patents and 100+ software copyrights. Its network includes 30 million registered cold chain vehicles and over 1.1 million square meters of cloud warehouses.
2. “Mergers + In-House Development” Growth Strategy
Xiansheng has rapidly expanded its scale through acquisitions and organic growth, establishing a nationwide logistics network. It serves over 5,000 B2B clients, with a 60%+ penetration rate among top 20 players in various sectors.
3. Proactive Expansion Along the Cold Chain Value Chain
- Xiansheng Industrial Services: Focuses on building intelligent cold chain warehouses.
- Canpan Technology: Commercializes cold chain technology, offering advanced supply chain solutions through AI and IoT.
- Liangti Power Technology: Collaborates with major automakers to develop next-generation cold chain vehicles, supporting China’s dual carbon goals.
- International Expansion: In January 2024, Xiansheng signed a partnership with a leading logistics firm in Singapore, marking its first step in the global market.
Looking Ahead
Following this round of funding, Xiansheng Cold Chain will continue its dual strategy of “Technology + Capital” to consolidate its leadership in the domestic cold chain logistics market.
About Xiansheng Cold Chain
Founded in 2016 by Grassroots Zhizhi Group, a subsidiary of New Hope Group, Xiansheng Cold Chain specializes in end-to-end cold chain solutions for the food service, retail, and manufacturing sectors. The company operates seven business units, with over 100 branches nationwide. It has been recognized as a top player in the cold chain industry, holding titles such as the second-ranked company in the 2023 China Cold Chain Logistics Top 100 and a leader in ESG and digital innovation.
Investor Insights
- Shi Gang, Chairman of Xiansheng Cold Chain:
“Digital transformation is key to the future of cold chain logistics. By integrating AI and smart technology, we aim to rebuild the industry’s value chain, improving efficiency, risk management, and customer experience.” - Yang Jun, Deputy General Manager of Guiyang Venture Capital:
“Xiansheng’s commitment to smart logistics has driven remarkable growth. Its distributed organizational model and strong management team will continue to push the industry toward higher quality and efficiency.”
Post time: Nov-15-2024