Shanghai-based SaaS enterprise resource planning (ERP) solution provider Jushuitan Network Technology was founded in January 2014, by Luo Haidong. The company targets enterprises selling on different third-party platforms with a 12-module design including everything from supply chain and retailers to order management and after service.
Jushuitan is present in more than 300 cities around China and has garnered over 500,000 customers in just six years. By the end of 2019, the company had expanded its sales team from 900 people to 1,200, indicating rapid growth.
Jushuitan has raised a total of $205.7 million over 6 funding rounds according to data from Crunchbase. The latest funding round on June 3 raised $100 million, and was led by Goldman Sachs. CICC Capital’s Yangtze River Delta Science and Technology Fund joined the round as new investors, with existing investor Blue Lake Capital also participating in the Series C round.
The funding will be utilized to implement upgrades and optimize product and service systems. It will also be used to create a collaborative supply chain, expand into international markets, and invest in the SaaS collaborative ecosystem.
Sun Mengxi, Managing Director at Goldman Sachs, commented on the deal, saying “The development of enterprise services, especially SaaS [in China] is lagging behind the United States by 5 to 10 years.” He added that the company sees Jushuitan as a turning point for the Chinese SaaS industry.
The funding round has more than doubled the company’s valuation to $1 billion, from its previous valuation of $422 million.
The digitization of China’s mammoth online retail industry has expanded rapidly since the early 2010s, and Jushuitan is betting on continued growth. Founder and Chief Executive Officer Luo Haidong believes things really started moving in 2013 and 2014.
“When e-commerce first emerged, stores were able to sell all their inventory as long as they managed their orders well. But as the number of stores increased and growth slowed after 2014, there was a greater need to improve management. I clearly felt that the market was calling for an integrated system to manage orders, warehouses, and supply chains — that gave Jushuitan a great opportunity.”
The COVID-19 outbreak may just give the Chinese SaaS industry the extra push it needs. During the pandemic, retailers experienced an unprecedented demand to improve online shopping functions and experiences. This has pushed SaaS providers and Jushuitan to the forefront of investors’ minds as an innovative solution for the future.