Founder of eBag Wash Zhang Rongyao: How I Impressed Tencent and Matrix SIG
Release Time:
2014-12-05 09:25
Source:
Leidi Online
Tencent Technology News (Lotte) November 24 - Recently, eDaixi, which provides laundry O2O services, is gaining momentum. Not only did it just receive a $20 million investment led by SIG of Matrix Partners China, but at the end of July, eDaixi also received a 20 million angel investment from Tencent.
eDaixi founder Zhang Rongyao recently shared at CEIBS how he impressed Matrix Partners China SIG and Tencent. Zhang said that a true mobile internet product is not simply moving the product online, but embedding internet genes into the product design from the start.
Zhang Rongyao said that Rongchang Company has been in the laundry industry for 24 years, and one can imagine the huge efforts and investments the company has made in operations during these 24 years. But as an internet company, its valuation method is completely different from traditional companies.
"Traditional companies wanting to transform to O2O and obtain investment must completely abandon the traditional model. Past investments, efforts, and even the glory that traditional companies are reluctant to give up often become shackles for their transformation."
Zhang Rongyao said that one cannot care too much about the past and cannot confuse the past with today. "The number of users we have today, consumption frequency, etc., are what investment companies value and what can provide us with a reasonable valuation."
Previously, Rongchang was a traditional company, but after transforming to O2O, its competitors are no longer past laundry companies but the much larger and stronger mobile internet companies. Rongchang said it started the transformation more than ten years ago.
Ten years ago, Rongchang launched the first generation O2O product—the laundry network card, achieving a shift from serving customers to serving users, and gradually reducing traditional enterprise elements. Zhang Rongyao said, "To transform, traditional companies cannot have too many employees, assets, or business elements. After more than ten years of streamlining, our company is now very 'light,' making transformation relatively easy."
eDaixi's financing went relatively smoothly. Zhang Rongyao used the cooperation process with Tencent, Matrix Partners, Huaxing Capital, and SIG as an example to describe how they immediately clicked. He claimed that Tencent proactively reached out to eDaixi, came from Shenzhen to eDaixi's Beijing headquarters, deeply understood and recognized eDaixi's model, reached a cooperation intention the same day, and signed the investment contract within a few days.
Cooperation with Huaxing Capital was even faster. Huaxing Capital's head Zhou Liang contacted CEO Lu Wenyong on Weibo, and early the next morning, Huaxing Capital's project leader sat down with Zhang Rongyao and Lu Wenyong to discuss cooperation, signing the contract the same day.
Matrix Partners and SIG also reached cooperation shortly after meeting. Regarding the rapid cooperation, Zhang Rongyao said, "Finding the right people is very important; based on mutual recognition, cooperation can be quickly achieved."
The home services O2O field is currently booming. Besides eDaixi, a series of startups have attracted venture capital attention. The reasons include: 1. High-frequency businesses can outperform low-frequency ones; 2. High-value items can bring in low-value items; 3. The younger generation of users must be valued.
The crowdsourcing model is showing its power. Zhang Rongyao once said that laundry is a high-frequency event; everyone, regardless of age or gender, has clothes to wash. Due to high housing prices, heavy smog, and improved conditions for post-80s and post-90s generations, more and more people are willing to choose laundry shops.
"Our model recruits 40, 50, or 60 people in each community as logistics pickup and delivery personnel. The benefit is that these people over 40 can exercise their bodies, stay connected with society, and match well with local life."
According to official statements, eDaixi's delivery personnel are directly selected from the community, with business conducted within the community. Neighbors know each other well, and these delivery personnel joining eDaixi must pay a deposit, which also ensures the safety of laundry delivery.
Zhang Rongyao said that currently many laundry shops exist in each community. Through the crowdsourcing model, resources are well utilized, solving the last 500 meters or even 100 meters of delivery. Laundry is still a high-margin industry and can achieve good economies of scale.
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