Bertelsmann Asia Investments (BAI) has led a US$20 million series B round in Zaozuo, a Beijing-based new-generation furniture brand that appears to be an upgraded version of Dutch furniture firm IKEA.
Morningside Venture Capital, IDG Capital, Vision Plus Capital, Zhen Fund and Tiger Cub Funds also participated in the round, according to local media reports.
Investors are backing Zaozuo as part of the consumer upgrade story in China, as young consumers prefer to shop online and demand more sophisticated products. The start-up, founded in 2014, partners with renowned Northern European designers such as Luca Nichetto, Claesson Koivisto Rune and Richard Hutten to produce sleek and modern furniture.
Zaozuo also operates retail stores in Beijing and Shanghai, and plans to open more as it expands. Its online store currently has hundreds of thousands of registered members and provides delivery services in 158 cities in China.
It said its average monthly revenue has reached over tens of millions of RMB, is expected to record RMB200 million (US$29 million) in annual revenue this year. Zaozuo’s products including sofas, tables, beds and lamps are priced for high-end consumers.
The start-up previously raised a US$15 million series A round from Bertelsmann Asia Investments, Morningside, IDG, Zhen Fund and Vision Plus. It’s unclear when that round was completed.