Grainger China raises fresh funding

Grainger China, a supplier of industrial maintenance, repair and operation products, announced that it has raised several hundred million yuan in its first round of financing.

The fresh round was led by Sinovation Ventures, a Beijing-based early-stage venture firm headed by artificial intelligence expert Kaifu-Lee. China Merchants Innovation Investment Management Co Ltd and Gopher Asset Management also participated in the round.

Grainger China, the former subsidiary of Grainger Inc, also announced that it has been acquired by the management buyout led by Zhou Yanhua, the former general manager of Grainger China.

With the move, Grainger China has transformed from a foreign-funded unit to a Chinese-owned company, which can help it better base itself in China and provide customers with more localized products and services, said Xiong Hao, executive director of Sinovation Ventures.

"China's industrial product market is huge and is in urgent need of integration. An industrial product platform with efficient supply chain management and service capabilities can transform the industry and lift overall circulation efficiency," said Xiong.

"The operational indicators are Grainger China is better than the average level in the sector and we are optimistic that it will achieve sustainable growth," he added.