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Shanghai Zhaoyou Information Technology

Energy · China · Founded 2015

Shanghai Zhaoyou Information Technology Co. Ltd., operating as 51zhaoyou.com, was established in 2015 as a business-to-business e-commerce platform focused on the petroleum industry in China. The company developed an online trading platform that connected petroleum and diesel oil buyers, primarily gas stations, with sellers. The platform's core offering was to provide comprehensive fuel trading, logistics, and financial services. For its clients, which included major logistics and courier companies like SF Express, JD Logistics, and ZTO Express, 51zhaoyou.com aimed to streamline the procurement of fuel. The business model involved customers making up-front deposits to secure lower rates on gas, which also served as the company's cash flow. Beyond fuel trading, the company expanded its services to include SaaS, hardware, supply chain management, and financial services for gas stations. Founded in Shanghai, the company secured significant venture capital, raising a total of $204 million over six funding rounds. Its last major funding event was a Series C round on August 1, 2018, which brought in $150 million from investors including GGV Capital, DCM Ventures, and SIG China. However, the business model of offering heavily subsidized prices to increase gross merchandise volume proved to be unsustainable. Thin profit margins and difficulty in negotiating with powerful gas station operators contributed to financial instability. By September 2021, the company faced a severe cash crunch, leading to delayed payments to employees and an inability to honor fuel payments for its clients. This situation prompted clients to demand refunds on their deposits, pushing the company towards bankruptcy. Ultimately, Shanghai Zhaoyou Information Technology entered into liquidation proceedings on May 11, 2023. Keywords: petroleum e-commerce, B2B fuel trading, online gas platform, diesel oil marketplace, logistics fuel procurement, gas station services, supply chain finance, energy management platform, China oil and gas, fuel logistics, SF Express supplier, JD Logistics fuel, ZTO Express fuel partner, GGV Capital portfolio, DCM Ventures investment, SIG China investment, Rainbow Capital, GLP, energy trading, deadpooled, liquidation