Xiaomi’s Lei Jun leads $100m round China’s Vancl – update
Lei Jun, Chinese super angle and co-founder of smart phone maker Xiaomi, has led a $100 million round for Vancl, China’s largest online clothing retailer. Existing investors Temasek Holdings, IDG Capital Partners, Ceyuan Ventures and SAIF Partners also participated.
The transaction was completed at the end of January, said Chen Nian, founder and CEO of Vancl.
One characteristic of Lei's investment approach is he only invests in industries he understands and alongside entrepreneurs that he knows well. Chen founded Joyo.com, an online retailer of books, music and videos, with Lei in 2000 and they sold it to Amazon for $75 million four years later.
According to AVCJ Research, Vancl has been through five rounds of funding, most recently receiving $230 million in June 2011. Qiming Venture Partners, CITIC Private Equity, Tiger Global Management, Trust Bridge partners and Kerry Properties are also among investors in the firm.
The company started its own online brand in 2007 and developed rapidly ever since then. Last year, it shifted its business strategy to cooperate with third-party brands, after acquiring one of its rivals Beijing Crucco Technology and using its brand to operate.
An US IPO was scheduled for the end of 2012 but later abandoned due to market volatility. Some investors are concerned whether it can keep burning cash to buy market share.
The company has reportedly lost money due to over-expansion and excessive inventories. In 2012, it halved its workforce to 5,000 after downsizing its logistics operations.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.