Club Factory, a Chinese e-commerce platform that sells style and beauty items and electronics accessories, has raised $100 million in a brand-new financing round as it aims to expand its footprint in India.
The brand-new funding round– Series D– was led by Qiming Endeavor Partners, Bertelsmann, IDG Capital “and other Fortune 500 companies from the U.S. and Asia,” the five-year-old Hangzhou-headquartered startup stated. Club Factory, which raised $100 million in its previous funding round early in 2015, has raised about $220 million to date.
Club Factory has amassed more than 70 million users on its platform, of which about 40 million reside in India. The start-up pointed out figures from app analytics firm App Annie to declare that Club Factory is now the third-largest e-commerce platform in India, surpassing once a market-leader Snapdeal.
Club Factory does not charge local sellers any commission cost, incentivizing them to reduce the cost of their items and expand offerings. The number of sellers on its platform in India has grown by 10 X in the last six months, the startup claimed. Club Factory, which has about 5,000 sellers in India, prepares to double that figure by year-end, it stated.
” At the same time, we have also pioneered to enhance the ‘store-within-platform’ idea in India’s e-commerce market, allowing direct contact between buyers and sellers through our application,” said Vincent Lou, co-founder and president of Club Factory, in a declaration.
He added, “We have altered the status of the Indian e-commerce industry that monopolized details of purchasers and sellers, permitting SMEs to own their customers and run their service better. All this, integrated with our method to decrease the transaction costs of buyers and sellers and permit more local gamers to enter the community, has worked really well for us in India.”
The startup stated in the coming months it will also bulk up more items on its platform and present new product classifications.