Warburg Pincus and KPCB China Pumps $100M to Chinese E-Tailer Xiu.com -- Largest Series B Round Financing in Chinese E-commerce
BEIJING, Aug. 18, 2011 /PRNewswire-Asia/ -- China's largest fashion E-Tailer Xiu.com raised a $100 million worth of joint funds from US private equity fund Warburg Pincus and venture capital KPCB China the online retailer announced Wednesday. This marks the largest B round money raised among Chinese e-commerce industry in history and secured Xiu.com the top player position in China's fashion e-commerce.
This is the second round fund raising for Xiu.com this year, after it won $20 million from venture capital KPCB, around 145 days ago. This time the fund was mainly invested by Warburg Pincus and jointly followed by KPCB.
"This is the first time we invest in a fashion online retailer because we discover the business model of Xiu.com is hard to copy," Spokesman from Warburg Pincus, a top private equity fund in US famous for its investment in global retailer brands. Warburg Pincus, which has invested in prestigious US retailing department store Neiman Marcus, said, "Xiu.com's strong global supply chain and professional team with international background as well as abundant world fashion resources contribute to its enormous growth potential and competence. Plus the soaring purchasing power and China's consumption upgrade, we're very confident about Xiu.com's future." Warburg Pincus also said that it plans to further expand its investment in Xiu.com, based on the market and company development.
"The competent capital and management wisdom as well as the global branding sources by Warburg Pincus are of great value to Xiu.com," Ji Wenhong, founder and CEO of Xiu.com said. "We will increase investment in sourcing global brands, recruiting best talents as well as enhancing our logistics capacity. We aim to provide our customers with high-end services and strengthen our industry leader position."
"Xiu.com has attracted many top talents of this industry after winning the first round of money earlier this year. By winning a second round financing in such short period of time reflects the recognition for its team competency and business model. We believe Xiu.com will increase its competitiveness even faster now and continuously lead in the e-commerce industry." Zhou Wei, partner from KPCB said.
Xiu.com hired China Renaissance as the exclusive financing consultant in this deal.