New Horizon, Addor Capital back China rural e-commerce play
New Horizon Capital and Addor Capital, a PE firm under Govtor Capital, have participated in a RMB500 million ($81 million) Series A round of financing for Huitongda, an online home appliance retailer that focuses on China’s rural areas.
Nanjing-headquartered Huitongda was founded in 2010 by Jianguo Wang and Xiuxian Xu. They previously set up Jiangsu Five Star Appliance, which was sold to US electronics retailer Best Buy at 2006.
The company works under an online-to-offline (O2O) model, primarily selling household items such as air-conditioning units, TVs, refrigerators and washing machines to people living in China's small towns and villages. At present, the company works with more than 8,000 small stores in seven provinces, including Jiangsu, Zhejiang and Anhui, selling products under a single platform.
Huitongda plans to use the funding to strengthen its IT infrastructure, hire additional staff and for marketing purposes. It aims to have 30,000 offline retail shops in its network within three years.
Earlier this year, Huimin, a Chinese B2B and B2C e-commerce platform that focuses on small-scale, community-based supermarkets, raised $100 million from a group of investors including CITIC Private Equity, Fortune Capital, GP Capital and Zhejiang Zheshang Investment Management.
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