Xijie Zha Chuan (‘Fried Skewers’), a Chinese snack brand, has completed its A Round of financing, garnering 295 million yuan ($46.1 million), jointly led by Source Code Capital and Focustar Capital, with Maxceed Capital acting as the exclusive financial consultant. The funds will be used for supply chain upgrading, team expansion and digital construction.
Xijie, mainly selling Chinese-style fried skewers, was established in 2019 and is headquartered in Nanjing. It aims to provide delicious and healthy leisure snacks for young consumers. At present, the brand has signed agreements for more than 1,400 stores in China, and founder Wang Kuankuan has said that his goal is “to open 10,000 stores in 100 cities.”
According to Wang, at present, the average monthly turnover of Xijie is nearly 150,000 yuan, and the overall revenue of the company this year is expected to achieve four-fold year-on-year growth. In addition, Xijie also attaches importance to the layout of food delivery services, and the turnover of food delivery of stores accounts for as much as 40%. This year, it was listed as one of the top 100 Meituan Waimai stores, and the average order fee of food delivery exceeds 50 yuan.
Wang Kuankuan introduced that the competitive advantages of Xijie are concentrated in the following four aspects:
First, the full allocation of the supply chain reduces the difficulty of opening a store, and the complex processing is completed in the factory, which can meet the unified distribution to stores across the country, thus ensuring the product quality of stores in various regions, reducing the requirements for franchisees, and facilitating store expansion.
Second, the brand has eight warehousing and distribution centers in China, and the logistics cost is lower than the industry average.
Third, the eye-catching packaging design helps to lower promotion costs.
Fourth, the firm has upgraded the packaging of traditional fried skewers with big cups that can contain the food while customers can easily grab, so that consumers can enjoy better packaged fried skewers.
In addition, the core management team of the brand is composed of senior people in the industry. They have worked in well-known chain catering and retail enterprises, and have rich experience in franchise system construction, store expansion, supply chain construction, product R&D, operation and organization management.