Chinese Cross-border e-commerce Club Factory has raised US$100 million in a series D funding round led by Chinese venture capital firm Qiming Venture Partners and several other funds at home and abroad, announces its exiting investor Frees Fund on Friday, a Chinese investment firm focusing on retail and deep tech field.
Existing investors including Frees Fund and investment company Bertelsmann Asia Investments (BAI) owned by Bertelsmann also participate in the round.
Founded in 2014, the Hangzhou-based e-commerce focuses on India, Europe, United States, Southeast Asia, and Middle East markets.
"Club Factory has a worldwide user base of more than 70 million with 40 million users coming from India alone," said the company in a statement.
According to a report by Indian technology-focused online publication ReviewTech, Club Factory entered into the India market in 2016 and started as an analytics company and made contracts with over 100,000 manufacturers and suppliers. It was installed on 12.18% of smartphones as of November 2018.
Club Factory has developed a platform named Marketplace where any qualified India seller can do business without paying commission. The firm also becomes the first e-commerce in India that allows both the buyers and sellers to communicate with each other via Club Factory-developed communication system.
"We want to realize the localization of the platform by attracting more local people into our system via lowering the transaction costs," said Aaron Li Jialun, founder of Club Factory.
Club Factory uses proprietary AI-algorithm and knowledge graph to compare prices from multiple manufacturers.
"Club Factory has set sights on reaching every nook and corner of the country giving young India customers easy access to affordable glamour at unbeatable factory prices," said Vincent Lou, founder of the firm.
"India ranks third based on purchasing power parity (PPP), and has the second-largest population in the world, which leads a diversified market demand," said Li.
The company has so far completed five rounds of funding. It closed US$100 million in a series C funding round from investment firm IDG Capital, BAI, Frees Fund, Chinese seed fund ZhenFund and Chinese Kunlun Investment Company in 2018. It raised US$20 million in a series B funding round led by BAI.