A Chinese finance company invests in luxury e-retailer Secoo
July 9, 2015 08:00 PM
Luxury products e-retailer Beijing Secoo Trading Co. this week announced that it had raised $50 million in a Series E financing round led by Chinese insurance company Ping An Insurance.
Secoo, No. 155 in the Internet Retailer China 500, grew its online sales 87% to $75 million in in 2014 compared with $40 million in 2013, according to an Internet Retailer estimate.
“The fund will enhance our capability in innovation and expansion globally,” Secoo founder and CEO Li Rixue says, “Also, our new strategic partner Ping An Insurance, has many online businesses, such as its online investment e-commerce website, Lufax.com, and online insurance e-commerce website Pingan.com. Together we can work to reach more consumers. ”
Lufax.com connects individual investors with small companies that need funds. Since its launch in 2011, more than 10 million users have registered and the site now processes about 200,000 transactions per week, according to Lufax.com.
Founded in 2009, Secoo raised about $150 million in previous financing rounds from several venture capital firms, including IDG Capital Partners, Bertelsmann Asia Investments and Silicon Valley Bank.
Secoo sells high-end products in nine categories, including handbags, watches, jewelry and even automobiles through its website and mobile app. Brands sold on its site include Rolex, Chanel, Cartier and Mercedes-Benz.
Through its service centers in Beijing, Shanghai, Chengdu, Hong Kong, Milan, New York and Tokyo, Secoo also provides after-sale services, including maintenance and product authentication, the company says.
Chinese consumers represent a growing share of the global demand for high-end products and they are looking for new luxury products. A survey this year from Bain Consulting revealed that nearly 45% percent of Chinese respondents plan to buy more products from newer luxury brands in the next three years. China was the fourth-largest market in the world for luxury shopping, according to Euromonitor International, dropping from third in 2013 as a government anti-corruption campaign cut into conspicuous consumption among affluent Chinese.