US-China Green Fund, an innovative private equity firm with a focus on green investments, announced investment of 500 million yuan ($75.8 million) in Huitongda Network Co Ltd to address rural sustainable development and poverty alleviation through private equity investments.
Founded in 2010 in Nanjing, Huitongda began to develop its rural e-commerce network in 2012. Through its O2O platform, Huitongda provides franchise members with training tools, financing, supply chain management, and sales support to better serve their rural customers.
As a pioneer in supplying electronics and home appliances to rural markets, the founders of Huitongda, Chairman Wang Jianguo and CEO Xu Xiuxian were keenly aware of the vast market potential of small and medium-sized townships and villages in China. The company has a deep understanding of the local characteristics of and the pivotal role mom-and-pop shops serve as both the agents for bringing goods to the countryside and upstream distribution channels for selling agricultural products.
Powered by the latest e-commerce technologies and the founders’ successful track record of building large-scale retail franchises, Huitongda developed a special new business model that has achieved great success. Now its network has reached over 78,000 mom-and-pop stores in 15,600 towns and villages across 18 provinces, serving nearly 50 million rural families with 200 billion yuan of GMV annually.
"Huitongda's innovative e-commerce business model and powerful network can be leveraged and enhanced to promote large-scale green product penetration and project execution for both green development and poverty alleviation in rural markets," said Bo Bai, CEO of the US-China Green Fund.
Bai said both companies are highly aligned on financial interests and social values to contribute to green development and poverty alleviation. The two companies agreed to empower some of the mom-and-pop shops to become "green village ambassadors" to help promote green products such as rooftop solar and source local green projects.
The Fund is fully committed toward contributing to a green and sustainable rural economy through this meaningful investment in Huitongda.
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