China's Largest Online Alcohol Retailer Jiuxian.com Secures Additional RMB 500 Million in Financing
BEIJING, Aug. 6, 2015 /PRNewswire/ -- Jiuxian.com chairman Hao Hongfeng announced that the online alcohol retailer has secured an additional RMB 500 million in its 7th round of financing, following the RMB 930 million secured during the first 6 rounds. The funds raised will be used to further expand the company's market share in the B2C field, and accelerate the development of its online-to-offline (O2O) business, jiukuaidao.com, and its line of customized brands for online sales channels. Hao also said the company is expected to submit an application for a listing on China's new over-the-counter (OTC) equities market within the next month. Jiuxian.com decided to be listed on the new OTC "mainly for the potential of uplisting to the Hong Kong GEM board or to the Strategic Emerging Industries Board (the new alternative stock exchange being built by the Shanghai Stock Exchange)", Hao explained.
Jiuxian.com's valuation increases to RMB 6.5 billion after 7 rounds of financing
Jiuxian.com once again received financial support. "The RMB 500 million investment came from Merrysunny Wealth as well as several other institutional and individual investors," Hao said. "It is not only the largest ever investment secured by Jiuxian.com, but also the largest in the entire alcohol e-commerce sector, increasing the valuation of the website to RMB 6.5 billion."
To date, Jiuxian.com has completed 7 rounds of equity financing, raising a total of RMB 1.43 billion. After the 4thfinancing round in 2013, the valuation of Jiuxian.com stood at more than RMB 2 billion. The current valuation at RMB 6.5 billion is "considered very high in the alcohol e-commerce sector, but is still low among all Internet firms. But generally speaking," Hao added, "it is a relatively fair price."
Bullish on B2B and O2O markets
Following 6 years of development, Jiuxian.com has built out 5 business segments: online alcohol retail -- Jiuxian.com (B2C); integrated branding services; real-time services -- jiukuaidao.com (O2O); creation of customized brands for online sales channels; and online special offers -- zhongniang.com (B2B). B2C is the core business.
Jiuxian.com has continuously gained recognition from the capital markets, with its promising capabilities at running its operations and its business model. The inflow of capital and the potential listing on China's new OTC market will serve to further boost the development of the company.
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