Icson in Talks with VCs, Expands Business
China Business News, 7/09/09
A source inside Icson revealed that the Chinese online B2C consumer electronics retailer is in talks with investment organizations, saying that Sequoia Capital will likely invest USD 10 mln, and China-Singapore Suzhou Industrial Park Ventures possibly investing several mln USD.
Icson CEO Bu Guangqi denied that the company was in talks with multiple VCs, and declined to comment on the two VCs mentioned.
Bu said that Icson was in the process of transitioning to a "Community + B2C" model for its 3C (computers/communications/consumer) products business. The company recently set up a marketing division, and with the expansion of the company's structure and the transition of its services, Icson's capital gap has become increasingly apparent. At present, Icson is focused primarily on the East China market – particularly Shanghai – allowing it to ship out orders in as little as two hours after receiving them. The company's initial expansion will be focused mainly on centers of IT industry activity and mature consumer markets including Beijing, Shenzhen, Chengdu, and Wuhan. Bu stressed, however, that the company will not sign any stringent "valuation-adjustment mechanism agreements" with investors.
At present, Icson's monthly revenues are nearly RMB 20 mln. Bu said the company predicts total operating revenues of RMB 300 mln for 2009.
Bu formerly served as one of the founders of Newegg China. In 2005, he left the company and not long afterward founded Icson.
Keywords: Bu Guangqi 3C B2C consumer electronics Icson Internet funding Newegg Sequoia Capital e-commerce revenue VC China-Singapore Suzhou Industrial Park Ventures
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