Chinese e-commerce site Xiu.com has secured US$100 million investment from two private-equity firms and the website will use the funds to enhance its distribution in anticipation of business expansion.
United States PE firm Warburg Pincus and the China unit of Kleiner Perkins Caufield & Byers invested the funds, Xiu.com said yesterday. Earlier this year, KPCB China also invested US$20 million in the website's first round funding.
"We will use the capital to hire more talents, upgrade the logistics system and expand our partnership with international brands to offer more products to Chinese customers," said Xiu.com's founder and CEO Ji Wenhong.
The Shenzhen-based website expects sales to quadruple to more than 1 billion yuan (US$156.6 million) this year, the company said.
PE firms are keen to invest in luxury shopping websites as they bank on rising spending that is driven primarily by upper middle-class consumers who are keen to chase after fashionable and luxurious items.
Xiu.com was launched in 2008 and sells clothing and apparels from over 3,000 domestic and overseas brands.
Chinese luxury consumption may grow an average 18 percent annually till 2015 and the total market size is expected to reach 180 billion yuan by then, accounting for over 20 percent of the global market, McKinsey Co said in a report earlier this year.
