Xiu.com, one of China’s biggest online retailers, have been attracting lot of investor attention. Earlier this year the company had raise about $20 million from Kleiner this year and now KPCB China and private equity firm Warburg Pincus has put as much $100 million in the company again. Founded in 2008, this online retailer has come a long way and offers both mid-range and luxury brand products like clothing, shoes, bags, accessories, cosmetics and home décor. The company has buyer offices in all the major cities of the world like New York, Los Angeles, Miami, Australia, Paris, London, Italy, Korea, Hong Kong and Japan.
As per Bloomberg, this online retailer is expected to increase its sales figure 4 times thereby reaching a figure of $156.6 million this year. as per the company’s officials, the new funding will be used to source inventory from global brands, add more talent, and enhance logistics capacities. Also it is said that this sort of funding marks the largest Series B round raised among Chinese e-commerce industry in history. This renewed faith in the consumer retailer section is fuelled by the soaring purchasing power and China’s consumption upgrade. Based on how the market and company performs in future, Warburg Pincus also said that it will further expand its stake in the company.
I think Xiu.com has leverage over others because its clientele is not just restricted to either middle class or the rich. Its wide spectrum of products caters to a very big section of the market and hence with increased purchasing power, it is attracting a lot of investor attention.