Capitals Watch Environmental Market Segment
AiHuiShou (www.aihuishou.com) is the biggest secondhand electronics recycling platform in China, and has completed $ 8 million round B of investment. It is reported that this round of investment is lead by IFC (one of World Band Group Institutions), and round A of investor is Morningside Venture Capital Investment (TASE: MVCI).
As a “Green TMT” concept of start-up company, AiHuiShou has been working hard for 3 years in the secondhand electronics recycling market in China. It got $ 2 million investment from Morningside in 2012.
This round of investment showed that the value and O2O mode of AiHuiShou has been recognized by international capital. “Recycling old machine” and “TM” innovative business has promoted the turnover of the company. Moreover, its corporation with large-scale e-commerce company like JD and Taobao could bring more customers.
Nowadays, investors are keen on companies related to concepts of “Economic Transformation and Upgrading” and “Environmentally Sustainable Development”. In third quarter and fourth quarter of 2013, the number of domestic replaced equipment to new equipment accounted for 56% and 59% respectively. In other word, in the future, that every 2 new machines sales will have at least one old machine jumping into recycling market in China. Every year hundreds of millions of devices to be eliminated, both a loss of resources, but also poses a potential harm to society. The recycling use of secondhand electronic products and E-waste industry are becoming social demands.
Opportunities leverage demands and attract investment. Mr. Jing, head of IFC Venture Capital, said that AiHuiShou used the power of Internet to treat electronic equipment in an environmentally responsible manner. And IFC prepared to invest in companies like AiHuiShou, who made recycling more transparent and reliable to global consumers, retailers and manufacturers through technology and innovation.
Furthermore, AiHuiShou optimized and transformed traditional environmental industry with Internet technology. Those recycling equipment are mainly flowing to the second and third tier cities and rural areas, as well as the secondary market in Asia, Africa countries. Eventually the solid waste will be handled by a professional environmental company.
IFC is a member of World Bank Group, and is also a world’s largest financial development institution focused on the private-sector. China is one of the largest investment growing countries. IFC Venture Capital provides equity financing for technology companies in early and growth stage. Its target areas include clean technology, communications, solid waste and wastewater, healthcare, education and agriculture enterprises.
Source: Jiefang Daily