B2C Lifted The Financing Competition For 60 Million Days To Complete Tens Of Millions Of Dollars Financing

B2C's investment and financing war is becoming more and more prosperous.

On the afternoon of 8 July, the vertical B2C website, which focused on shoe sales, announced the completion of the B round of financing. The two investors introduced in this round were tiger funds and Tak Tong capital, with a total value exceeding US $10 million.

It is worth noting that the whole financing process lasted only two months. It seems that the B2C market investment trend is really hot.

This is a B2C financing feast.

In 2010, the whole B2C industry almost became the object of capital chasing. Jingdong mall successfully raised $150 million, and V+, which was founded at the beginning of the year, has raised over $50 million in the absence of its official operation. Now, Le Tao has set a new record of tens of millions of dollars in financing.

"Just a moment, Yu Huafeng just came to shake hands with me to congratulate me," said CEO, who seemed to be in a good mood yesterday afternoon.

In April 7th, they just sent out an email. They received the first investment letter of intent in second days. They came from Tiger Fund and signed all contracts in April 30th.

Several rounds of negotiations and due diligence during the period were completed at the fastest speed.

As of last Sunday night, the funds of two investment banks had been remitted to Yue Tao's account.

In May 2008, Le Tao was founded by Bi Sheng, director of marketing and assistant director of Baidu. The former CEO Lei Jun of Jinshan group acted as director of Le Tao.

According to Bi Sheng, the sales volume of Le Tao was over 100 million the year before, and it was signed at more than 1000 per day to achieve breakeven point.

At this point, the fund anxiety of the next step will start to promote the "financing competition" of Le Tao.

Data show that since 2004, Jingdong mall has been involved in e-commerce and has maintained a growth rate of more than 300% for 4 consecutive years.

Why does B2C pursue this speed so eagerly? Cao Fei, an analyst with Analysys International, said, "if the sales of vertical B2C websites such as shoes and 3C category account for 10% of the total sales volume, it will be possible to go to the profit stage."

Although vertical B2C will not be a "killer" like general merchandise B2C, Bi Sheng has previously said it will not finance to advertise, but the first time to enhance customer experience involves technology, service team, management and warehousing, and so on.

"Yue Tao's urgent financing is speed overriding everything," an industry insider commented.

Bi Sheng said that the proceeds from this round of financing will mainly invest in logistics construction, "mainly to strengthen distribution centers."

Le Tao's move to enhance service delivery capabilities, but also has the means to enhance investor confidence.

According to its introduction, the two investors did not inspect the sales of Le Tao during the negotiation process, and focused on the construction level of the logistics system, backstage system and management system of the two companies.

"We had an intention to talk with Baidu, but in the end we failed to reach an agreement in depth." Bi Sheng explained to the daily economic news that the final choice of Tiger Fund and Tak Tong capital is to take account of these two experiences in the field of B2C investment, which will benefit the growth of the company.

In addition, the investment of Yue Tao is another measure of Tiger Fund's layout in China's B2C field.

So far, Tiger Fund has invested 5 B2C in China: excellence, Dangdang, Jingdong, fan and Le Tao.

Layout of books, 3C, clothing and footwear in vertical B2C.

The top 3 have taken the biggest market share of the branch without any objection, and the former two have begun to diversify into the department store.

At present, the competition of comprehensive B2C stores is fierce. Taobao, Dangdang, Jingdong and so on are fighting in this field. Compared with that, the B2C website will be more successful.

Footwear started late in the field of e-commerce in China, but in the middle of 2009, a large number of B2C enterprises appeared.

2010 will be the time for these enterprises to concentrate their efforts. Capital injection will play a great role in their development.

Despite being a beneficiary of B2C's investment, Bi Sheng believes that the current craze is overly dangerous and that the whole industry needs to be calm, or else it may go to the deformity.