China's Dayone Capital closes debut fund at $630m

LPs include sovereign wealth funds, Chinese internet companies, and family offices, according to a source close to the situation. The firm launched in 2020 and set a target of $500 million for the fund. A first close came in December of last year. Dayone declined to comment on fundraising.

Chen is a serial consumer entrepreneur who took Mujosh from nothing to 2,000 stores in over 200 markets and more than RMB2 billion ($309 million) in annual revenue. He went on to co-found BA Capital in 2016 with David He, who was previously head of strategic investment at ByteDance.

There are some similarities between Dayone and BA Capital. The latter - also known as Black Ant Capital - invests in emerging brands popular among young people. The firm is currently in the market with its debut US dollar-denominated fund. It reached a first close of $100 million last year, having earlier closed its second renminbi fund at RMB1 billion ($147 million).

Dayone claims to focus on long-term investment opportunities in consumer verticals where it expects to see structural change over the next decade. The firm positions itself as a "Founders Fund," combining insights into the consumer ecosystem with operational expertise.

More than 10 investments have been made so far. They include Heytea, a milk tea beverage chain; Dimsum Bureau of Momo, a Chinese-style bakery brand; HotMaxx, an off-price retail chain selling near-expired food and groceries; and WonderLab, a nutritional supplements business that specializes in meal replacement.

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• Topics
• Greater China
• Fundraising
• Consumer
• Venture
• China
• Venture
• BA Capital
• Dayone Capital