CITIC Goldstone Investment Management Co., Ltd has teamed up with Founder H Fund Co. Ltd, the direct investment arm of Founder Securities, to lead a RMB400 million (US$56 million) series C round in Shenzhen Youkeshu Technology Co., Ltd, a cross-border e-commerce platform.
The company is now valued at RMB3 billion (US$580 million) post-money.
“Although cross-border e-commerce is facing adjustment, but it is still an exciting and promising field,” said Zhang Zilun, an executive at Founder H Fund, referring to policies implemented by the Chinese government last year to streamline e-commerce firms that connect Chinese consumers with imported goods, sometimes avoiding paying import taxes and other fees in the process.
Tan Kai, an investment manager at Goldenstone, said despite regulator’s clear intention to better supervise and manage the sector, cross-border e-commerce still provide real benefits to Chinese consumers and continues to have great growth potentials for companies like Youkeshu.
Founded in 2010, Youkeshu connects Chinese consumers with imported products including maternity and baby products via Chinese e-commerce platforms including JD.com, Vipshop and Miya. The company also connects overseas consumers with China-made products, including drones and consumer electronics, via Ebay, Amazon, Wish and other third-party platforms.
The company said it recorded a net profit of RMB295 million in 2016, up 660% year-on-year
Youkeshu previously raised RMB100 million (US$14 million) in a series A round in 2014, and received RMB400 million (US$56 million) from a series B financing round in 2015. Numerous Chinese RMB funds, whose identities cannot be verified, invested in the company.
The company plans to use the latest proceeds to expand its business and build up its logistics capabilities.