Netease Tech, 1/04/11
Chinese B2C online shoe retailer Letao has announced completion of third-round funding reaching USD 30 mln (nearly RMB 200 mln).
Letao raised second-round funds in June 2010. The latest round of funding was led by previous investors including a Tiger-affiliated fund, DT Capital Partners, and Ceyuan Ventures.
VP Chen Hu disclosed that following second-round fundraising, orders rose 50% QoQ. The three investors agreed to Letao's request for additional funding in December 2010. The entire RMB 200 mln has already been received by Letao.
Chen said the funds will be used for three purposes: first, to maintain and expand market share through low prices and improved user experience; second, to increase investment in technical operations and R&D personnel, particularly focusing on enterprise resource planning (ERP) modules, sales tools, and user experience; third, to be prepared to conduct large-scale promotional campaigns depending on changes in the advertising market in 2011. In the past, Letao did not carry out large ad campaigns, instead relying on word-of-mouth.
Editor's Note: For more background on this topic, please see "Letao Begins New Round of Funding" MD 12/21/10 issue.