Letao Begins New Round of Funding
Sootoo, 12/21/10
Reports today say that Chinese B2C online shoe retailer Letao is preparing to begin a new round of funding possibly totaling more than RMB 200 mln. Industry sources say that after it completes the new round of funding, Letao could be planning to launch a price war in the online shoe market.
Letao VP Chen Hu said that since the company first received investment from a Tiger-affiliated fund, VCs have been "in constant contact." When asked who would invest in Letao's new round of financing, Chen said that the Tiger-affiliated fund and DT Capital Partners would likely continue to invest. Letao CEO Bi Sheng would oversee talks, Chen said, adding that Bi would provide more details once arrangements had been confirmed.
When asked whether the new round of funding would be for RMB 200 mln as rumored, Chen said that the figure would likely be in that range based on typical funding practices. Chen estimated that funding would be completed in about a month, based on "the personality and speed we've seen from Bi in the past."
Editor's Note: For more background on this topic, please see "Letao Confirms Funding, to Invest in Logistics" MD 6/09/10 issue.
Keywords: Bi Sheng Internet funding B2C Letao DT Capital Chen Hu e-commerce VC Tiger Fund
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