Singapore's Novena buys VC-backed China hair salon chain

Investors in Xingkedou will receive a combination of cash and shares in Novena. According to AVCJ Research, Xingkeduo has raised approximately RMB160 million across four rounds – seed, Series A, extended Series A, and Series B – from the likes of Future Capital, Sinovation Ventures, Hongdao Capital, Shunwei Capital, Black Hole Capital, and China International Capital Corporation (CICC).

Novena, which is controlled by Singapore-based investment firm DORR Group, recently received $20 million from China-based Sinopharm Capital and Cedarlake Capital. It is also collaborating with the GPs on a $150 million fund that will support Southeast Asian healthcare businesses.

Novena is an aesthetic healthcare business that claims to have over 250 locations globally across 20 countries. Its primary brand is Novu Aesthetics, which specializes in laser facial treatments intended to reduce pigmentation and sun damage as well as rejuvenate the skin. The company also offers DNA testing to establish vulnerability to inheritable conditions, health screening for early detection and prevention, and stem cell treatments for pain management.

While Novena already has a significant presence in Asia, the merger with Xingkedou – which has nearly 100 outlets – will help it further penetrate the China market. The plan is to create a “hybrid store format offering complementary medtech-based aesthetic and hairdressing solutions driven by artificial intelligence (AI), as well as generate cross-selling opportunities for both brands.”

Founded in 2015, Xingkeduo combines speed – a wash-and-cut takes 15-22 minutes – with an online-to-offline model, allowing appointments to be booked via a mobile app. Alternatively, customers simply collect a ticket from a machine and wait in the store for their number to be called. The app can also be used to rate hairdressers, helping the company to manage staff training.

The company has served more than three million customers, with over six million appointments booked and paid for online. Expansion into medical services, such as scalp management and hair transplants, has already been identified as the next stage in Xingkeduo’s evolution.

“We analyzed the prospects of the service industries and the healthcare sector, and we believe that the future unicorns will be multi-brand matrices, and the customer experience will not be limited to the store, but consist of a seamless online-to-offline experience, covering a full range of on-demand products and services, including customized aesthetic and medical solutions,” said Willy Chuang, Xingkeduo’s co-founder, in a statement.

Chuang will serve as co-CEO of the Novena alongside Terence Loh, co-founder of Novena. Nelson Loh, the other co-founder, will become chairman of the company.

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• Topics
• Southeast Asia
• Greater China
• Trade sale
• Technology
• Healthcare
• China
• Shunwei Capital Partners
• Future Venture Capital
• Sinovation Ventures
• CICC
• TMT