AVCJ

Temasek, Ceyuan, IDG, SAIF invest $100m in China’s Vancl

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Vancl, China’s largest online clothing retailer, has raised more than $100 million in funding from existing investors Temasek Holdings, IDG Capital Partners, Ceyuan Ventures and SAIF Partners.

The transaction was completed at the end of January, said Chen Nian, founder and CEO of Vancl, at the company's 2013 annual conference.

According to AVCJ Research, the firm 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.

Vancl 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.

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