As China's pet market continues to expand, domestic pet food brands are experiencing unprecedented growth opportunities. Recently, GuiBao Pet Food Group announced the completion of a 500 million yuan (approximately $70 million) Series B financing round, jointly invested by Legend Capital and Industrial Bank Group, with Taihe Capital serving as the exclusive financial advisor. This marks not only the largest single investment in China's pet food industry in 2019 but also demonstrates strong market confidence in GuiBao and the domestic pet food sector it represents.
1. Investment Overview: Strategic Upgrade with Capital Support
GuiBao previously secured 400 million yuan in Series A funding from KKR in February 2017. With this latest round, the company's total financing has reached 900 million yuan. The new capital will be allocated to:
- New production lines: Expanding manufacturing capacity to meet growing market demand
- R&D and testing centers: Enhancing product development capabilities and quality control
- Smart warehousing facilities: Optimizing logistics efficiency and reducing operational costs
- International pet competition venues: Strengthening industry ecosystem and brand influence
2. GuiBao's Evolution: From OEM to Brand Leader
Founded in 2006, GuiBao initially focused on pet food OEM manufacturing, accumulating extensive production experience and technical expertise. In 2014, the company launched its proprietary brand "Myfoodie," marking its official entry into China's domestic pet food market. Through differentiated product positioning and targeted marketing, Myfoodie achieved rapid growth with consecutive years of triple-digit sales increases—far exceeding the industry's average 30% growth rate.
During 2019's "618" shopping festival, Myfoodie ranked as the top domestic pet food brand on Tmall and the leading domestic pet brand on JD.com, achieving sales leadership across multiple categories including mixed formula dry food and snacks.
3. Core Competitive Advantages
Product Innovation: Differentiated Offerings
- Mixed formula food: GuiBao pioneered "dual-formula" pet food in China, addressing pet owners' demand for nutritional balance and flavor variety
- Comprehensive product portfolio: Myfoodie developed probiotic-enhanced food, complete wet food, freeze-dried meals, and other innovative products
- C2M customization: Implemented smart production lines and personalized platforms to create tailored nutrition solutions
Supply Chain Excellence: Global Operations
- Smart manufacturing: Established automated production facilities in China and Thailand
- International R&D: Maintains research centers across the U.S., Europe, and Asia developing over 2,500 prototypes annually
- Quality assurance: Sources ingredients from Global G.A.P certified suppliers and complies with FDA standards
Brand Marketing: Engaging Young Consumers
GuiBao adopted entertainment-focused marketing strategies, including celebrity endorsements and reality show sponsorships, tripling brand awareness. Collaborations with popular programs like "Back to Field" expanded influence among younger demographics.
Technological Edge: Patent Portfolio
With 141 patents by 2018, GuiBao leveraged international OEM experience to build technical barriers while informing domestic product development.
4. Investor Perspectives
Legend Capital Managing Director Chen Rui noted China's pet food market shows strong growth potential toward becoming a 100-billion-yuan industry. GuiBao's decade of international OEM experience, combined with its successful Myfoodie brand and capable management team, positions it well to lead industry development.
Industrial Bank Beijing General Manager Wang Zhenghao highlighted pet food's resilient, high-frequency consumption characteristics in mature markets. With rising pet ownership and e-commerce growth in China, GuiBao's successful transition from OEM to branded business through product innovation and quality commitment makes it a standout domestic brand.
Taihe Capital Partner Jiang Ke identified three advantages: favorable industry conditions (pet care being among China's fastest-growing consumer categories), global-local synergy (international supply chain combined with domestic market understanding), and strategic execution (category leadership in snacks before expanding into complete food solutions).
5. Future Outlook
"Domestic brands understand local consumers better than international players—that's key to Myfoodie's sustained growth," said GuiBao founder and chairman Qin Hua. The company plans to leverage its OEM experience and shareholder resources to further optimize supply chains, deepen consumer insights, and drive product innovation to establish Myfoodie as a globally competitive domestic brand.
With strengths across product development, supply chain management, branding, and technology, GuiBao has secured both market recognition and investor confidence. The 500 million yuan Series B financing will help consolidate its industry leadership while potentially paving the way for broader success among Chinese pet food brands.