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36Kr learned that the small pet brand "Bukaxing" completed nearly 100 million yuan in Series A financing, led by old shareholder Jinding Capital and followed by Chuangxiang Capital. It is reported that this round of funds will be mainly used for the construction of the second and third phases of the Shandong Industrial Park, team building, and overseas channel expansion.

"Bukaxing" is a brand that 36Kr continues to pay attention to. It was founded in 2019 and focuses on the research and development, production and sales of supplies and food for small pets such as hamsters, parrots, rabbits, and turtles. Previously, Bukaxing completed the Pre-A and Pre-A+ rounds of financing in 2022 and 2023 respectively.

Some products of Bukaxing

Data released at the 3rd Pet Industry Conference held in Shenzhen in March this year showed that the number of people keeping hamsters, aquariums and other exotic pets will increase in 2023, and the younger the pet owner, the higher their preference for exotic pets. Yao Yuanrong, founder of Bukaxing, also observed that "the number of users of various small pet categories is increasing, and everyone is more concerned about cost-effectiveness and quality-price ratio." Products with good quality and low prices have always been the core point to win this group of users.

In the past, Bukaxing mainly focused on the hamster category. Relying on core products such as hamster nutritional staples, hamster bath sand and urine sand, and hamster snacks and teething sticks, it has formed an advantage in user awareness and brand praise. During this year's 618 period, Bukaxing ranked TOP1 on multiple lists in the small pet category on platforms such as Tmall, Douyin, Pinduoduo, and JD.com, and has been ranked TOP1 in the Tmall hamster category for two consecutive years.

The difference between the small pet industry and the mainstream pet industry is that the categories are broad and numerous, but the scale of a single category is often relatively low. In other words, after breaking through the single point, improving category coverage is a must-solve proposition.

According to Yao Yuanrong, Bukaxing's product matrix has expanded from the original rodents to birds and turtles. The core of the next new product expansion is to continue to enrich and iterate rodent products, while increasing investment in turtles and birds and continuously launching new products; lizards, snakes, and aquatic animals are also in reserve.In terms of product research and development, Bukaxing focuses on small pet smart products, and "more smart products will be launched in the next stage."

Products for parrots from Bukaxing

The fragmentation of the supply chain is another characteristic of the small pet industry, and it is also the focus of Bukaxing's efforts to build barriers. In the last round of financing, Yao Yuanrong told 36Kr that "the focus will be on supply chain construction." According to him, Bukaxing's Phase I industrial park in Shandong has been fully put into production, and Phases II and III are currently in the preparation stage. "We have optimized a lot of production equipment and processing technology, hoping to become the world's leading small pet supply chain."

In terms of channels, in addition to mainstream e-commerce platforms, the rapid expansion of offline and overseas markets are becoming new growth points for Bukaxing. At present, Bukaxing has four stores in Shenzhen, two of which are the latest 3.0 version stores. In the future, more directly-operated stores will be opened in the Greater Bay Area, while considering open cooperation and franchising. In terms of overseas, Bukaxing will initially cooperate with agents to open stores. Its Korean flagship store in Gangnam District, Seoul, South Korea is expected to open at the end of this year.

"Bukaxing" Universiade Center Store

Yao Yuanrong admitted that in the current economic environment, Bukaxing's product category expansion and domestic and overseas channel expansion are facing great pressure, and the small pet industry has no established reference system. "There are many unknowns that we need to explore. In the future, we hope to continue to cultivate our internal strength and become a global small pet company."

The project leader of Jinding Capital said: "The pet industry is a long-term blue ocean track. Although the small pet industry is still in its early stages of development, it has a promising future. We believe that Bukaxing's team, products and brand have great advantages. From a single category to diversified categories, from the domestic market to the global market, from e-commerce channels to omni-channel and full industrial chain, Bukaxing has been growing. We are willing to accompany the Bukaxing team for a long time, empower them, and build the first brand in the small pet industry together."