Lvxiniu Recycling completes USD20 million angel round financing
This round of financing was led by Zhongyu Green Fund and Dade Capital (Rongzi360.cn).
On February 21, Lvxiniu Recycling (Henan Green Life Environmental Protection Technology, or Lxnhs.com), an internet-based recycling service platform, announced the completion of an angel round of financing of 20 million US dollars. This round of financing was led by Zhongyu Green Fund and Dade Capital (Rongzi360.cn).
Huaqi Capital acted as the exclusive financial advisor.
Chen Jia, the company’s operating director, said they will use funds for the expansion of enterprise-level clients and the improvement of the internet recycling system.
Lvxiniu was founded in October 2018, with focuses on enterprise-level recycling and trading of renewable resources.
In the past two years, Lvxiniu has built a recycling system integrating online and offline through self-built logistics, warehousing, and Internet operation services and trading platforms.
At present, Lvxiniu has a complete logistics system and an independent recycling center, with a storage area of nearly 40,000 square meters, and a monthly recycling volume of 10,000 tons, an increase of more than 120% over the same period last year.
Lvxiniu serves more than 12,000 enterprise-level users, and has established thorough cooperation with many upstream companies including Suning, Carrefour, Wal-Mart, Yonghui Superstores, Renrenle, Jumei, and Xiaomi. Downstream partners include Nine Dragons Paper, Shanying International Holdings, Century Sunshine Group and MCC Paper Yinhe, for which it has provided a stable supply of waste paper.
Data show that China’s waste paper recycling market has exceeded 200 billion yuan in 2020, but there are problems such as low efficiency, long recycling chains, heavy reliance on imports, and unstable waste paper recycling.
Beginning in 2020, the country has gradually tightened its foreign waste import policy, resulting in a substantial reduction in the volume of foreign waste imports and a continuous increase in the price of domestic waste.
“Both internal and external factors force the domestic traditional waste paper recycling industry to transform and upgrade,” Chen Jia said.
According to Chen, the recycling system of renewable resources in Japan, the United States and other countries has been established for decades, and the recycling rate of waste paper is significantly ahead of the Chinese market. Therefore, the space for development is expected to large.
Lvxiniu effectively solves the information gap between the recycling parties and the service providers through the development of the user APP. The APP for recycling staff and drivers provide data for the deployment and turnover of human resources and vehicles, which greatly improves the overall recycling efficiency.
Chen said that Lvxiniu plans to quickly replicate its formula to more cities.
In addition, Lvxiniu will also dabble in the direction of renewable resource recycling business big data, reverse logistics system for urban areas, comprehensive information platform for the renewable resource industry, as well as community services and new retail business sectors.