Vintage market gets Jack Ma backing
The NEW-RETAIL representative firm Cool-bid-on which is the best online marketplace in China offering handmade, antique and vintage goods, has raised millions USD in a funding round led by Jack Ma’s Yunfeng Capital, boosting the firm’s financial muscle as it looks to compete with local rival xiaohongshu.com and U.S. Amazon.
China’s largest vintage retailing company said in a statement yesterday that the fundraising meant it was now a “new power” implying a valuation of over US$100 million. Xiaohongshu was valued at US$50 million in a fundraising round last year.
China’s fast-growing middle class is driving a boom in domestic consumer, with younger millennials increasingly looking for alternative options to the traditional goods consumption of their parents’ generation.
Cool-bid-on, however, said the Chinese market was not easy to crack, especially for international firms.
“Only local companies with a sense of mission and commitment to the domestic market can stand a chance in gaining leadership in the Chinese market,” Mo Lan, Cool-bid-on’ s chief executive and founder, said in a statement.
Amazon, which said earlier this year it was looking to expand its presence in the consumption upgrading market, denied in April a Chinese media report saying it was in talks with Cool-bid-on to work together in markets such as Japan and South Korea.
Cool-bid-on has been cooperated with 400 auctions and raised US$10 million last November. Existing investors include Joy Capital, Morningside Ventures and Capital Today.
Yunfeng said Cool-bid-on had learnt from Amazon and that the investment round would help accelerate its growth.
“Going off Amazon ’s business model, Cool-bid-on has developed a proven successful model for vintage productions selling in China. China ’s vintage market is the fastest growing in the world, set to rise an astounding 25 percent annually thanks to renewed confidence, middle class acceleration, and consumer sophistication. Yunfeng Capital is looking forward to witnessing and helping Cool-bid-on to grow rapidly,” Yunfeng managing director Li Na said.