Chinese venture capital firm Yunqi Partners has led a RMB165 million (US$24 million) series B+ round in Baibu, a business-to-business textile e-commerce mobile app, with participation from Chengwei Capital and Source Code Capital.
In 2015, the market size of the Chinese textile industry exceeded RMB10 trillion (US$1.4 billion), with nearly one million new products being launched every year, according to China National Textile And Apparel Council.
However, the massive industry makes it difficult for apparel companies to find the textile they want. It takes around two days to one week for buyers and sellers to match. Baibu helps improve the efficiency of the discovery and transaction process by providing a set of services including storage, logistics and marketing, as well as setting up a standard textile information database.
"The current textile industry has huge potential to be perfected. Baibu's business model, compared with yellow pages and purchasing agents, offers the downstream customers a lower price, higher-quality products and better services," said Mao, Chengyu, founding partner at Yunqi, in a company announcement.
Founded in 2014, Baibu has established supply chain centers in Guangzhou and Shaoxing city. It has partnered with over 800 suppliers and aggregated over 3,000 suppliers on its platform. At the same time, it has set up a textile information database of over three million stock keeping units, covering more than 80% of the textile in the market. The firm also developed a fabric pattern search engine, with an accuracy rate of 98%, making it easier for customers to find the right patterned product.
In July 2016, Bibu raised a series B round worth tens of millions of U.S. dollars from Chengwei and Source Code. Four months prior, it received tens of millions of RMB from Source Code. The company plans to use the latest proceeds to perfect its supply chain system, as well as expand its business.