China VC Investment List Q2 2022 – New Retail
For new retail, we at EqualOcean have identified 20 companies to watch in Q2. The main criterion is to receive venture capital investments of more than USD 30 million on average or the equivalent value in CNY in a single round. When compiling the list, we also considered factors such as growth prospects, brand influences and reputation, and planned expansions.
From SMEs on the verge of making their mark in the market to well-established companies that have already raised significant funds and are always looking for new injections of capital, here is a list you won’t want to miss.
Better Life (Chinese: 步步高生活网) has pocketed CNY 2 billion (USD 300 million) in a strategic funding round from investor Xing Xiang (Chinese: 兴湘集团) and Lugu (Chinese: 麓谷发展集团) on June 15. 2003 in Hunan Province, the company is a business group with multiple businesses such as supermarkets, shopping malls, shopping complexes, logistics and transportation.
In mid-June, Style3D (Chinese: 凌迪科技), a 3D fashion synthesis software developer, received tens of millions of dollars of strategic investment undertaken by Hillhouse Capital and CDH Investments (Chinese: 鼎晖投资). Founded in 2015, the company has provided products and services such as 3D design tools, collaborative work systems, and supply chain delivery for apparel companies for the past several years.
On May 30, Seek (Chinese: 帅克), a company which focuses on the research, development and production of pet food, completed its pre-IPO financing round of 500 million CNY (75 million USD). The investment was led by Confitop Capital and Boyu Capital, followed by Riverhead Capital, Mango Fund, Sino Pacific Capital, Linyi City Fund and other investors. Founded in 2012, Seek has established a supply chain system to provide customers with original in-trust manufacturing (OEM) services of pet food and pet snacks.
Dairy products from the sun
Sunshine Dairy (Chinese: 阳光乳业, 001318: SZ), a professional dairy enterprise which integrates research, development, production and sales of dairy products, successfully raised 669 million yuan in its IPO on the Shenzhen Stock Exchange on May 20. Jiangxi Province, the company advertises low-temperature dairy products and milk drinks as the main products. In addition, it also specializes in pasture and animal husbandry.
MZZ (Chinese: 麻爪爪), a Chongqing-based company specializing in the production of spicy pickled products, raised nearly 100 million yuan in a Series A+ funding round from investors in late May. such as Jiawo Venture Capital, Jinding Capital and Fanqiziben. This round of funding will primarily be used for digital upgrade, supply chain building, and team building needed for cross-jurisdictional operations.
CellX, a company dedicated to redefining food production and consumption by applying advanced innovations through life and food sciences, has secured nearly CNY 100 million from Jiawo Venture Capital, Lever VC, Agronomics and Better Bite Ventures in a Series A funding round in mid-May. Founded in 2020 in Shanghai, CellX will mainly use proceeds from this cycle to expand the technology platform and promote pilot testing.
Wing Cafe (Chinese: 咖啡之翼), a coffee shop chain brand, received 100 million yuan in a strategic funding round from investor CCIG (Chinese: 中金资本) on June 27 . Founded in 2000, the company integrates coffee shops, coffee machines, supply chain and other diversified business areas.
STARPONY (Chinese: 星空优品), a brand that focuses on providing more creative toys for children aged 3-10 around the world, closed its Series A funding round worth dozens millions of dollars in mid-May. It was conducted by eWTP, with the participation of K2VC. The proceeds from this round of financing will mainly be used for talent recruitment, product development, brand building and other aspects.
Shine+ (Chinese: 萱嘉生物), a maker of skincare and healthcare products, raised nearly 200 million yuan in a Series A+ funding round on June 24. This investment round was led by Orient Fuhai (Chinese: 东方富海) and Huaxilangya (Chinese: 华熙朗亚), followed by Cowin Capital (Chinese: 同创伟业), Hongtai Fund (Chinese: 洪泰基金), Lihe Hongxin (Chinese: 力合鸿鑫) and Sihai New Material (Chinese: 四海新材基金). Founded in 2017, the company is the world’s first platform that applies supramolecular chemistry technology to pan-health.
Quantum Hi-Tech Organic
The acquisition of Quantum Hi-Tech Biological (Chinese: 量子高科), by Tate & Lyle Investments for 237 million USD was finalized at the end of May. Quantum Hi-Tech Biological is an innovative company whose main activity is biomedical research and development, micro-ecological nutrition and micro-ecological medicine. The acquisition was originally announced on March 31. Based in Guangdong province, the company will then officially join Tate & Lyle, strengthening its global specialty food ingredients business.
Founded in 2021, T COMMA, a Chinese tea beverage brand offering “fresh nutrition”, raised €50 million in its pre-Series A funding round on April 19. Italian leather goods, wine and clothing brand RUWISHDA is the investor. The proceeds will be used to open 60 stores in Nanjing and hold summer events, according to a company statement.
Sequoia China-backed retailer Bananaunder (Chinese: 蕉下), known for its products with built-in sunscreen technology, filed a listing prospectus on the Hong Kong Stock Exchange on April 15. CICC and Morgan Stanley are the co-sponsors. Founded in 2013, the company is expanding its product line from UV-filtering umbrellas to clothing, footwear and accessories. Previously, Bananaunder pocketed over $50 million in three funding rounds backed by Sequoia China, China Renaissance and Borchid Capital.
Food company Xijie (Chinese: 喜姐炸串), known for its deep-fried skewers, raised 75 million yuan in its Series A+ funding round on April 25, with exclusive investment from Vision Knight Capital. Previously, it raised CNY 295 million in Series A backed by Source Code Capital and Focusstar Capital. Founded in 2019, the Nanjing-based company aims to provide healthy leisure snacks.
The acquisition of Comicity (Chinese: 动漫星城) by GDH (Chinese: 粤海投资) for CNY 700 million was completed on June 1. The company believes that this investment will create synergies in branding, tenant mix, marketing and help improve operational efficiency. . Based in Guangdong Province, the company is mainly engaged in the operation and management of the animation-themed mall “Guangzhou Animation Star City”.
In April, high-value comprehensive social platform Anesidorabox (Chinese: 安妮斯朵拉魔盒) announced the completion of a $13.5 million angel funding round led by Insight Partners, a global private equity and venture capital firm. This round of funding will primarily be used for ecosystem building, section optimization, and social research and development related to the metaverse. Launched in May, it aims to consolidate online shopping, big data, cloud computing and artificial intelligence into one.
InfoQ (Information Queue) completed a CNY 100 million Series B+ funding round at the end of April. The investment came from New System Creation (Chinese: 新系创), Orient Fuhai and CybernautVC. Founded in 2006 and based in Beijing, InfoQ is a community-based software development media platform.
Vienna Hotel Group
Vienna Hotel Group (Chinese: 维也纳酒店) closed a strategic investment from Jin Jiang International (Chinese: 锦江国际) on June 13. The financing amount is CNY 219 million. Founded in 2009, the company is a business hotel chain operator whose brands include Vienna Hotels, Royal Vienna Hotels, Vienna Apartments and other product lines, ranging from three-star to five-star stars.
Du Feng Xuan
Bone broth supplier Du Feng Xuan (Chinese: 独凤轩) pocketed 100 million yuan in a post-IPO funding round in May. The investment was led by the China Agricultural Reclamation Industry Development Fund and Teway Food. Half of it will be used to complete the business development fund request while the remaining CNY 50 million is for the construction of the bone broth project. Founded in 1996, the listed company focuses on the production, research and development of high calcium nutritional bone broth.
Hot dog brand ECKL’S (Chinese: 爱氏热狗) raised tens of millions of CNY through an angel funding round in late April. The investment came exclusively from K2VC and will be used for product iteration, digital system upgrade, organization building and store expansion. Based in Xiamen, the company describes its style as “fast casual” and offers a range of products from burgers to drinks.
Fondatore (Chinese: 拇指衣橱), a clothing customization platform for businessmen, completed a Series B funding round worth US$170 million on June 18. It was led by Plum Ventures (Chinese: 梅花创投), followed by Merdian Capital (Chinese: 华映资本), Belle Fashion (Chinese: 百丽时尚), and Chisage (Chinese: 中哲集团). This round of investment will mainly be used to build a new lab that will help brands develop advanced fabrics.