The fund will help to get a firm grip in lucrative e-commerce market
Club Factory, an e-commerce vendor from Chinese origin set itself in the market as a seller of fashion, beauty and electronic items. The company was able to source 100 million US dollars in a new round of financing. The funds will help the firm to enhance its capabilities to capture market in India.
Series D round of financing was led by Qiming Venture Partners, IDG Capital and other Fortune 500 got involved. Club Factory previous year got 100 million dollars in financing and raised a total of 220 million dollars to date.
The aim is to expand the seller base
The company has a giant base of 70 million users out of which 40 million comes from India. These users use the e-commerce platform for shopping. As per the market review Club factory is the third-largest e-commerce vendor in India overtaking Snapdeal. The competitive pricing of Club Factory due to its strategy of not charging any commission from the local sellers, instead they provide incentive for cutting down the cost of products and increase the sale. The number of sellers that have joint the e-commerce platform has increased 10 folds in six months. Right now there are 5,000 sellers are with the company and they are targeting 10,000 by the year-end.
Vincent Lou, Co-founder and Chief Executive of Club Factory said, “At the same time, we have pioneered to strengthen the store within platform concept in India’s e-commerce industry, allowing direct contact between buyers and sellers through our application. We have changed the status of the Indian e-commerce industry that monopolized information of buyers and sellers, allowing SMEs to own their customers and run their business better. All this combined with our strategy to reduce the transaction costs of buyers and sellers and allow more local players to enter the ecosystem.”