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Updated: 09/2018

Huidu Environmental

China / Shanghai , China / Website

01/2019 Series A
B2B E-commerce Energy & Cleantech Food & Beverage Logistics & Supply Chain Sustainability Location Tech SaaS
  • Pitch

    China's recycling, e-commerce and logistics sectors get a welcome boost as Huidu ramps up production of cost-saving eco-boxes nationwide.

  • Why

    • High environmental costs

      Conventional courier packages are often discarded after one-off use, causing adverse environmental impact.

    • Rising demand for packaging

      Growing trend for online shopping is fueling demand for packaging for courier deliveries.

    • Few recycling facilities

      Consumers need more convenient recycling and reuse systems for unwanted packaging materials and boxes.

  • Market

    50.7bn

    Number of courier parcels handled in 2018 by China’s delivery services industry, 26.6% higher than in 2017, consuming 14.3bn cardboard boxes and 43bn meters of tape.

  • Product

    Three kinds of packing boxes are available: ZerO Box for electronics, clothes and other consumer goods, Cool Box for fresh food, and ZerO Bag for files and documents. Community-based smart locker system Polanwang was launched to collect any unwanted boxes, conventional cardboard and batteries.

  • Founders

  • Investors

  • Journey

    • 2017 – Huidu Environmental company was formed; received RMB 10m seed funding; ZerO Box released.

      • The Launch

        August, Huidu Environmental was launched in Shanghai.

        November, released ZerO Box.

        December, provincial-level agents were recruited, expanding network to 14 provinces across China.

      • Fundings

        November, secured RMB 10m seed funding from Pre IPO, Shangwan Investment and Chongqing Environmental Fund.

    • 2018 - Cool Box, ZerO Bag and Polanwang were launched; secured multimillion-dollar pre-Series A funding; strategic cooperation with dozens of companies.

      • Products and services

        April, launched two new products Cool Box (for fresh food) and ZerO Bag (for files and documents), as well as the upgraded ZerO Box 2.0 version. 

        • Added RFID tag to upgrade ZerO Box 2.0 to replace conventional courier paper receipts.
        • Service life per box was increased to 7–8 months.
        • Boxes could be reused for over 50 times. 

        Launched Polanwang, a smart recycling locker program to encourage people to recycle Huidu boxes, conventional delivery boxes and batteries at the community level.

        • Tested Polanwang lockers in Xiamen by cooperating with the Xiamen city government, Xiamen postal service administration, China Environmental Protection Foundation and Cainiao Smart Logistics Network Limited.
        • Installed smart recycling lockers and bins at residential communities, convenience stores and business districts.
      • Expansion

        January, reached strategic cooperation with Amazon.com, GOME Electrical Appliances Holding Limited, Xiaomi, Vipshop, DHL, Sinopharm Group, ZTO Express and China Post. 

        April, co-launched the Qingteng League together with Suning Logistics, JD Logistics and China Post to promote environment-friendly logistics. Suning Logistics signed a contract to use Cool Box.

        June, reached strategic partnerships with logistics services companies Transfar and EHD. 

        July, provincial-level agent network was expanded to 20 provinces across China.

        • Strategic cooperation with Ningmengdou, a B2B home appliance purchasing platform.
        • Use Ningmengdou as a primary platform to launch environmental protection products for the manufacturing industry.

        August, ZerO Box to be trialled by China Post in multiple cities to launch its green packing project.

        • Signed strategic cooperation deal with Yunda Express to use eco-friendly boxes and co-build a green logistics chain. 
      • Fundings

        November, secured RMB tens of millions in pre-A round funding led by Wang Gang, Daocin Capital, Banruo Investment and Hengqin CIMC Readysun Innovation & Entrepreneurship Investment Fund. 

    • 2019 – RMB 100m Series A funding; revenue reached RMB 20m.

      • Expansion

        January, reported total revenue for 2018 reached RMB 20m.

      • Fundings

        January, secured RMB 100m in Series A funding led by Bojiang Capital, joined by Gemboom Venture Capital, Yi Road Capital, Daocin Capital and Banruo Investment.

        • Funding to be used to expand team, operations and recycling networks. 
    • Huidu has secured cooperation partnerships with over 200 businesses including JD Logistics, Cainiao, Suning Logistics, China Post and Vipshop. Over 2m Huidu boxes are circulating in the market, estimated to have been used tens of millions of times. 

      With over 150 staff, the company has 20 operation centers to focus on box recycling nationwide including remote areas such as Xinjiang, Tibet and Hainan.

    • The company plans to expand into pallet logistics to improve resource utilization rates by setting up pallet renting and sharing facilities.

  • Business Model

    Huidu rents out eco-friendly boxes on a monthly, yearly or per-use basis, mainly for e-commerce delivery and logistics companies. Huidu is building a nationwide network of logistics and recycling facilities to make it convenient for consumers to return unwanted packaging and boxes. Additional revenue will be earned from patents and value-added services.

    The long-term aim is to get as many e-commerce and logistics businesses to switch to Huidu's green boxes for deliveries to customers. This will increase business for Huidu's box rental model, as well as boost China's recycling economy to meet global environmental standards. Expansion will come from rising demand from e-commerce companies for eco-friendly packaging solutions.

    The most popular product ZerO Box is made of the lightest plastic material that is 100% recyclable, with each box being durable enough to be reused up to 14 times resulting in big cost-savings for e-commerce and delivery operators. Huidu also makes its own boxes using less water and chemicals in the manufacturing processes. The boxes are self-sealable without any tape or glue. The box materials are also non-toxic and are therefore safe for transporting food products. The ZerO Box is estimated to be 30% cheaper than conventional cardboard boxes.

    Huidu has three subsidiaries specializing in R&D, business operations, logistics and recycling. It also collaborates with partners to build and operate logistics and recycling systems nationwide. For example, Huidu plans to extend the Polanwang smart locker system into local community, residential and business districts. Customers can collect their purchases and leave the unwanted empty boxes inside the lockers to be collected for reuse or recycling by the delivery companies.

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