Shuhai, Haidilao-Linked Foodservice Supply Chain Provider, Raised RMB 800 Million in Series B Funding

This is an English adaptation of a FoodBud historical article originally published on September 5, 2022.

According to Securities Daily, Shuhai Supply Chain announced on September 5, 2022 that it had recently completed an RMB 800 million Series B financing round.

The round was jointly led by BOC Investment, China Agricultural Reclamation Fund, and existing shareholder China Resources Consumer Fund. Existing shareholder Legend Capital also made an additional investment, and Taihecap continued as exclusive financial advisor.

Why Operators Should Watch Shuhai

Founded in 2014, Shuhai is a third-party, fully managed food ingredient supply chain service provider. It has served more than 2,000 restaurant chain brands, including Haidilao, Tai Er Sauerkraut Fish, Fengmao Skewers, Meet Xiaomian, and Chef Fei.

General Manager Gong Li told Securities Daily that the new funds would focus on digital and intelligent upgrades, further work in food ingredient supply chain scenarios, and deeper integration of supply chain capabilities with technology.

Operating Through Covid Disruption

Shuhai provides one-stop ingredient processing and supply services for chain restaurant groups and group-meal companies. Gong said Covid disruptions reinforced the importance of distributed inventory storage.

For example, when one Shanghai warehouse was closed during the outbreak, Shuhai quickly supplemented supply using warehouses in Hangzhou, Wuxi, and other East China locations.

During the Shanghai outbreak, Shuhai also worked with Haidilao through their normal cooperation system to help maintain supply. Using Haidilao stores’ community reach, the companies delivered goods to nearby communities and office buildings.

Gong said Shuhai also helped address breakfast demand in Shanghai by rapidly reviewing supplier documentation and moving Wufeng Fuchun buns, a Yangzhou heritage product under China Resources Wufeng Group, into the Shanghai market.

Winter Olympics Supply Experience

During the 2022 Beijing Winter Olympics and Winter Paralympics, Shuhai supplied ingredients for employee meals across the Beijing, Yanqing, and Zhangjiakou Olympic Villages.

The project lasted more than five months and covered nearly 500 ingredient categories, with total supply exceeding 700 tons.

Scale and Infrastructure

Gong said Shuhai’s core focus is serving chain restaurant scenarios. As of the article date, the company had:

• Served more than 2,000 brands
• Built more than 40 warehousing and distribution logistics centers nationwide
• Operated 9 production and processing centers
• Reached a total operating area of more than 400,000 square meters
• Deployed more than 2,000 cold-chain logistics vehicles nationwide

Shuhai positions itself as a third-party supply chain partner that helps restaurant operators manage origin traceability, food safety controls, product R&D, warehousing, and delivery. Gong said refined process management can also help restaurants ease pressure from high rent, high labor costs, and high ingredient costs.

Capabilities Beyond Distribution

Securities Daily reported that Shuhai’s position in the food ingredient supply chain sector is supported by four areas: food safety control and delivery capability, digital system services, dish R&D and innovation, and industry resource coordination.

The company has built the offline innovation experience center “Shuhai Baichuan” and formed the “Shuhai Baichuan Alliance” with hundreds of domestic and international suppliers. The aim is to provide low-barrier, efficient information matching for foodservice entrepreneurs and operators seeking to scale into chain brands.

Supply Chain Finance

Gong said financial capability had become an urgent customer need, as restaurant companies preferred to deploy more capital into stores rather than into supply chain inventory.

Shuhai therefore worked with Bank of Shanghai to design and launch a supply chain platform called “Shangxing e-Chain.” For companies that had long purchased through Shuhai’s platform, the system allowed credit approval through document submission and financing applications, helping reduce payment pressure for downstream restaurant operators.

Note: Financing amounts and related forward-looking uses of proceeds are historical, as reported in September 2022.