Black Ant Capital leads a funding round for Kaida Hengye, raising nearly 400 million RMB to enhance its production capacity and optimize the potato supply chain in a growing market.

Target Information

Founded in 2000, Kaida Hengye is a leading company in the domestic frozen potato products processing industry in China. The company has already established two industrial parks in Ulanqab and Taipusi Banner, which are expected to give Kaida Hengye the capacity to hold the largest frozen potato product processing capability in Asia within the next two years. With a focus on optimizing the entire potato industry chain, Kaida Hengye is on a trajectory to become a significant player in the market.

Industry Overview in China

As of the 2021/2022 fiscal year, China emerged as a net exporter of frozen fries for the first time, a trend that continues to show promise. Historically, Chinese companies have not been represented in the top echelons of the global frozen fries production capacity ranking, despite the country being home to fast-food giants, first witnessing the arrival of western franchises in the late 1980s. This changing landscape reflects a burgeoning domestic demand for frozen potato products as well as a measurable enhancement of production capabilities.

China's frozen fries industry is also benefiting from a parallel increase in demand both domestically and from international markets. The technological advancements made in production and distribution techniques since the 196