YesMy Reveals USD 10 Mln Second-Round Funding
China Business News, 6/23/10
Chinese online direct sales platform YesMy announced details of its second round of funding recently, saying that it had received a total of USD 10 mln in investments led by Hong Kong-based Mandra Capital. First-round investor DCM also took part in the second round, as did Zero2IPO Capital and Shanghai Venture Capital, both new investors.
YesMy CEO Liu Jun said that money from the second round of funding would be used mainly for logistics network construction. YesMy already has a regional warehouse in Beijing, and plans to set up more warehouses in Guangzhou, Chengdu, Xi'an, and Wuhan.
In addition to its tea and wine businesses, YesMy plans to add a new line of products for sale in Q4 of this year. Liu declined to reveal any details about the new products.
YesMy has approximately 2 mln registered users at present, Liu said. The company had sales of RMB 3 mln in its first year of operation, approximately RMB 24 mln in its second year, and is expected, with monthly sales at present ranging between RMB 7 mln and RMB 8 mln, to have sales of up to RMB 100 mln this year. Profit margins for wine, the site's main product, are approximately 40%, Liu said, but relatively high logistics costs have kept the company from breaking even so far.
YesMy launched direct sales of wines in June 2008, and began selling tea in August 2009. The company relies primarily on relationships with overseas vintners, and sells imported wines directly to customers through its platform.
Keywords: Mandra B2C e-commerce revenue Liu Jun Internet profit registered users second-round Zero2IPO YesMy SHVC Doll Capital Management alcohol
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