VC/PE Overseas Overseas: Look at the new opportunities in the Middle East from the Rabbit Project

"Seeing a lot of GPs to raise funds in the Middle East, you can bring at least 50 million US dollars."

Not long ago, the person in charge of the asset management agency in Beijing's joint family office revealed to the investment community that in the face of the complex and changeable macro environment in front of the world, China VC/PE is opening the third country outside China and the United States. And region, the ancient and mysterious Middle East is one of them.

Take the East Wind of the “Belt and Road”, a large amount of funds flow between China and the Middle East. In the past few months, Sequoia China, Kaihui Fund, and other active investment institutions in China have successively announced a large fund raised, and the Middle East LP has emerged in the same way.

In the past, most of the Middle East left people was the inherent labels of the rich, desert, and oil, but now this mysterious and rich hot soil is becoming a emerging market favored by Chinese entrepreneurs and investors. Especially under the upsurge of e -commerce, a group of companies with Chinese genes are scattered here, such as Shein, Fordeal, Club Factory, SHOPEE and other cross -border e -commerce platforms have emerged in the Middle East, which has also attracted many Chinese investment Standing in the organization.

"But for many e -commerce companies who do business in the Middle East, logistics and distribution are always a difficult bone." Wang Yu, a young man who engaged in e -commerce entrepreneurship in the Middle East, lamented, "No exaggeration to say, in overseas logistics companies Prior to the influx, the development of logistics in the Middle East is equivalent to the logistics stage of China before 2000. The user experience can be described as "bad". "

When merchants and consumers are distressed by slow and inefficient express services, a super unicorned beast -extremely rabbit has advanced into this logistics desert that needs to be reclaimed.

The valuation is 130 billion yuan, a super unicorned beast breaks into the Middle East

"This is a brave rabbit." Wang Yu painted vividly, "In just a few months, more and more trucks and delivery staff printed with red and white J & T Express in Liadi On the streets of the Middle East. "

In 2021, time has launched the Middle East expansion plan, which has occupied the head status in Southeast Asia, China, and other markets. After inspection, site selection and trial operation, the extremely rabbit was officially operated in January this year in the UAE and Saudi Arabia. At the same time, its nationwide self -distribution network and localized warehousing system cover all the local provinces and regions. The UAE and Saudi versions of the Rabbit Express App are also launched simultaneously.

Once landed, the rising speed of the extremely rabbit in the Middle East is amazing. Public data shows that from June-August 2022, the average daily single-month-old monthly growth rate of the Rabbit Saudi market was as high as 79.4%, ranking first in the industry.

What kind of company is this? The impression that the extremely rabbit left to the outside world has always been mysterious. In 2015, a logistics company named J & T Express started in Jakarta, Indonesia, and quickly occupied the express market in Vietnam, Malaysia, the Philippines, Thailand, Singapore, Cambodia and other regions.

In charge of this courier dark horse, it is OPPO Indonesian CEO -Li Jie. In order to solve the transportation problem of OPPO mobile phones in Southeast Asia, and the experience, resources, and network systems of OPPO over the years, J & T Express has grown into Southeast Asia's most dazzling logistics company in just two years. It has the largest market in Southeast Asia. Purchase.

After the Southeast Asia running model, five years later, in early 2020, J & T Express transformed into a "extremely rabbit" to kill China, and it stirred a new war in the seemingly finalized Chinese logistics rivers and lakes. The "regional agency model" that has achieved huge success in Southeast Asia, the extremely rabbit quickly took the net in China. It was less than 7 months covering the whole China. Data show that in less than a year, the daily single volume of the extremely rabbit exceeded 20 million orders.

It should be noted that the number of orders for 20 million days is a life -and -death line in the Chinese express industry. When this line is reached, the Zhongtong lasted for 16 years, the circle was universal for 18 years, and the Yunda took 19 years. She had only 20 million in 25 years. The extremely rabbit only took 10 months.

The extremely rabbit is still running. In October 2021, the extremely rabbit announced the acquisition of the Best Group China Express business at a price of RMB 6.8 billion (about 1.1 billion US dollars), which shocked the Chinese logistics circle. This means that the past extremely rabbit opened up the cooperation path with Ali, successfully entered the "rookie ecology", and connected to the single volume. At the same time, with the landing of this transaction, the extremely rabbit dispels the impression of the outside world's "蹭 网", which will occupy about 14%of the domestic express delivery market share, and it will become the first echelon in China's express delivery industry.

In June of this year, Li Jie, the head of the head, rarely appeared at the big customer meeting. The Rabbit announced that the average daily votes on the entire network had exceeded 40 million, which was close to the profit and loss balance point.

The speed of the extremely rabbit is obvious to all. Chinese investors queue up in line. In the second half of 2021, the extremely rabbit had received two large amounts of financing in less than half a year. Waiting for the well -known VC/PE, the valuation is also rising. The "Global Unicorn List in 2022" just released recently shows that the valuation of the rabbit has reached 130 billion yuan, which is the only logistics company in the country with a valuation of more than 100 billion yuan except the rookie.

Chinese entrepreneurs and investors group: Go to the Middle East

The ambition of extremely rabbit is far more than that. After the two major logistics markets in Southeast Asia and China achieved steady growth, the extremely rabbit began to calculate the third largest base in entering the Middle East.

The prince, the rich, the oil, and the desert are the labels given to the Middle East. In the business world, it is also very attractive here. The high consumption power and up to 90%of the Internet penetration rate provides high -quality growth soil for e -commerce development in the Middle East.

Especially in Saudi Arabia, the annual growth rate of e -commerce markets exceeds 32%, which is one of the fastest markets in the world's current e -commerce. The unit price of e -commerce customers even exceeds Europe and the United States.

Whoever won the logistics, whoever won the e -commerce company. "Although this market is not as big as expected, from the perspective of global logistics and transit hubs, the Middle East is definitely a market that cannot be lost, because there are many open spaces over there, which is very suitable for Europe, Asia, and Africa to do global logistics. Layout. "Wei Jianhui, an analyst of the retail industry of easy viewing analysis, said that the Middle East logistics has just begun, and the rivers and lakes giants have not been born, and each one is breaking through.

"Some countries in the Middle East are actually very anxious. They know that oil is staged, so they have been looking for the next growth point." The founding partner of a well -known VC institution in Beijing found that when dealing with the Middle East sovereign fund, he found that There is a common feature -very obsessed with new technology, they want to build a new logistics center to help them achieve higher efficient logistics. Chinese companies are the focus of their future cooperation.

And due to the complexity of geopolitical environment, difficulty integrating culture, and difficult localization tasks, many overseas logistics players still stay away from this mysterious hot land.

But the extremely rabbit came rapidly and officially launched the third stop of its global logistics layout in early 2022. In the words of J & T Ji Rabbit Express, the person in charge of the Middle East SEAN XIAO: "This is an important step for the establishment of a global delivery network to establish a global delivery network. I hope to use the efficient and perfect delivery network of the Rabbit Express to effectively improve the shopping experience of the UAE and Saudi Arabia consumers , Help the development of the Emirates and Saudi e -commerce industry. "

The Middle East Revelation of a startup company

In the Middle East, the extremely rabbit uses the regional agency model to cooperate with regional agency partners in various markets to assist the headquarters to operate the logistics network in the designated area. The key part of the logistics network includes sorting and long -distance transportation. The headquarters and regional agent partners operate through regional operations. Local outlets and service stations are usually managed directly by regional agents or managed by network partners.

The fierce, what is the confidence of the rabbit?

First of all, the success of Southeast Asia has precipitated the strong native national conditions adaptation capabilities for the extremely rabbit, and the Chinese market that is particularly prosperous in e -commerce and logistics has further verified the "regional agency model" of the express black horse. All advantages are superimposed, so that the extremely rabbit can operate in the market with incomplete markets in any express service system and quickly run into the market's head forces.

What's more important is that although the e -commerce company went to sea at the time, due to the unique cultural and living habits of the Middle East, the Middle East countries such as Saudi Arabia and the UAE were one of the most difficult to clear customs clearance in international logistics. There are huge customs clearance obstacles -opaque customs clearance procedures, irregular regulatory law enforcement, complicated visa and product certification procedures. There are a lot of problems.

The scarce customs clearance licenses and immature address libraries, how to enter this market with strong consumption power, but is almost closed, is a problem that lingers in the hearts of Chinese entrepreneurs who have been cross -border e -commerce in China. For a long time, it is a big pain point without a suitable local express delivery service. Many logistics companies can only rely on third parties. The path of "freight forwarding" is greatly reduced.

The extremely rabbit with many overseas localization experience was the first to attack and win the killer. In August 2021, the person in charge of the Rabbit Middle East and the Minister of Communication Industry, the Ministry of Communications Industry, gathered at a exchange meeting. The two sides had a in -depth dialogue on the Middle East Logistics Express solution.

One month later, the Rabbit received the official licensed express operating institution with a highly gold -containing Saudi Arabia with a very high gold -containing Saudi Customs Customs Card. The dual certificate is complete and the compliance is worry -free. The extremely rabbit has successfully launched its own customs clearance mode, so that the logistics outsiders have entered the accelerated expansion model.

During the period, an investment institution named EWTP Arabia Capital played a vital role. Established in 2019, Yida Capital is the only PE fund that supports Chinese companies to deeply cultivate in the Northeast Africa. Over the years, Yida Capital has set up a bridge between China and other emerging markets such as China and the Middle East to assist companies to solve the problem of localization of products and services.

"Greater Rabbit is the most worthy partner in the Middle East logistics ecosystem." As one of the investors of the extremely rabbit, Yida Capital can be said to be an important witnesses and long -term runners of the Rabbit's rise in the Middle East. Before the extremely rabbit officially settled in the Middle East market, Yi Da Capital had accompanied the extremely rabbit executive team to inspect the market. In this process, strategies, referring to resources, and guidance and suggestions. In addition, as one of the most important LP of Yida Capital -Saudi National Sovereign Fund, it undoubtedly brought a real advantage to the development of the Rabbit in the Middle East.

"After more than three years of market inspections, we believe that for the logistics ecology of the Middle East and the market in the sea, extremely rabbits are the most genetic transformers. On the one hand, it starts from overseas markets, familiar with the environment and model of going to the sea, and in each of each of them. The regional localization capacity is strong and verified. On the other hand, with its play and strategy, the maximum resources and market enthusiasm can be mobilized in the shortest time to solve regional problems, give full play to the team's strength, and in the global scenario The organization model of the extremely rabbit is extremely combat effective. "Jerry Li, the founder of Yida Capital, summarized the analysis of the investment community. Less than a year of breaking into the Middle East, the Middle East logistics war in the extremely rabbit has begun to take shape -the headquarters of the extremely rabbit area is located in Saudi Arabia, with a local team of more than 2,000 people and more than 1,300 operating distribution vehicles. The storage and distribution center, the end distribution is covered by Saudi Arabia.

VC era

"It's like sitting on the shuttle machine"

At present, the consensus that China's venture capital circle is gradually formed is -from the perspective of corporate strategy and investment, emerging countries have become a vital deployment and investment area. As a lively and crowded Singapore, the new navigation era of Chinese entrepreneurs and investors came quietly.

"Whether watching projects in Southeast Asia or the Middle East, I feel that I have taken a time shuttle." When saying this, Bao Fangang, chairman of Huaxing Capital Group, returned from overseas. This time, he turned around along Hong Kong, Singapore, the Middle East, and the United States, and lasted for almost three months before and after.

"From the perspective of Chinese companies going to sea, emerging markets should be the first choice." Bao Fan analyzed that the economy of emerging markets and China is highly complementary, there are a lot of natural resources and young labor. "The roads and precipitated models in China's economic development have a high degree of learning significance for emerging markets. It is not possible to learn the United States, but it should be possible to learn in China. "

As we have seen, the "Nuggets" of SHEIN, Amazon, Fordeal and other e -commerce companies go to sea, and a group of companies with Chinese genes are emerging overseas. "Now China not only goes out of the manufacturing industry and retail industry, but even the service industry can go to sea." An investor who saw the sea track was pleased. But he also admits that the e -commerce and express industry of many emerging countries has just started. There are still variables in future development. "There are too many structural opportunities in it."

But looking at the Chinese express rivers and lakes, which can live at the same time in China and international chess at the same time, the extremely rabbit is one of the few.

This network is weaving bigger and bigger. Following the Internet in January this year, the global market layout movement accelerated, and then it was announced that it entered the Latin American market in Mexico. At this point, the extremely rabbit has layout in 13 countries in Southeast Asia, the Middle East, Latin America and other places. At present, the Rabbit has also established 12 transfer centers and 26 sets of scattered points in the Latin American market. The distribution network basically covers the core areas of all 32 states in Mexico.

Different from many players in the industry under the banner of international express logistics, in fact, only the one -ringing of the industry chain and taking the "freight forwarding" road, the extremely rabbit has carried the "full link service". When deploying each new area, the extremely rabbit, as always, opens throughout the industry chain, and grasps the international express logistics from the issuance of the sender from the distribution and the trunk to the end distribution network in its own hands. This is the core goal of Globalization Globalization, and it is also an inherent advantage.

This also directly supports the staggering valuation of the extremely rabbit. "Link the domestic-cross-border-foreign ground express network, and the extremely rabbit has built a wider business imagination space for its global territory." Wei Jianhui analyzed that these three major territories lack any piece of one piece to become a real express delivery. Giant.

Standing at the era of the old and new alternation, the Chinese team's departure team is mighty. To win this global battle, more investors are already on their way.

*Wang Yu in the text is a pseudonym

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