GGV, Joy Capital lead $50m round for China’s 91Xinshang

Existing investor Northern Light Venture Capital (NLVC) also re-upped. The company plans to use the new capital to expand its product line and team, as well as for brand building.

Founded in 2015, 91Xinshang connects sellers and buyers of luxury items such as handbags, jewelry, watches, and clothing. The company has a team of experts to provide authentication services. It also works with Chinese insurance companies to cover all transactions and promises to reimburse consumers who mistakenly buy fake products.

The platform charges a commission to sellers for its “white gloves” consignment service, and also derives revenue from its luxury products maintenance service. The company claims to have processed more than 50,000 transactions since inception.

“We are optimistic about the used luxury goods market under a circular economy, driven by an innovative business model,” Eric Xu, a managing partner at GGV, said in a statement. “91Xinshang’s team has experience in both the luxury goods industry and internet industry, which allows them to build an integrated operational model.”

The company previously raised an undisclosed amount of seed funding in March 2015, followed by a Series A round from Joy Capital and Skysaga two months later. NLVC came into a Series B round in November of last year.

Chinese consumers spent more than RMB500 billion ($77 billion) on luxury goods in 2016, accounting for nearly one-third of all purchases globally, according to a recent McKinsey & Company report. Spending levels are expected to double by 2025.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Expansion
• Consumer
• Technology
• China
• GGV Capital
• Growth capital
• Northern Light Venture Capital
• TMT
• Venture