US baby clothing start-up raises $ 510 million from Chinese investors
HONG KONG – PatPat, a global e-commerce website that sells baby clothes and matching family outfits, has raised $ 510 million thanks to two fundraisers backed by Chinese investors.
The investments include a Series C round of funding jointly led by General Atlantic, the China-focused private equity firm Capital Today, and CDH Shanghai Baifu Wealth Management, a unit of alternative investment firm CDH Investments. Other investors who backed the transaction include SIG China, Ocean Link and INCE Capital, according to Monday’s announcement.
PatPat’s D-Series was led by Yuri Milner’s DST Global, with contributions from General Atlantic, Ocean Link, and GGV Capital.
Chinese investment firm Index Capital served as the exclusive financial advisor for both transactions.
PatPat, which supplies products to consumers in over 100 countries and regions, plans to expand beyond its core markets in Europe and North America to regions such as the Middle East and South America. .
Founded in 2014 in Silicon Valley, PatPat is led by Albert Wang and Ken Gao, both with masters degrees from Carnegie Mellon University and later worked together as senior engineers at the US software maker. company Oracle Corp.
The idea of starting an e-commerce site for children’s clothing came to Gao as his wife was expecting their first child and they were struggling to find functional and fashionable clothes for the newborn.
To seize the business opportunity, Gao partnered with Wang to create PatPat under a direct-to-consumer (DTC) model to provide parents with a range of newborn clothing, children’s clothing, family outfits. assorted and home accessories online.
“The penetration of the e-commerce market is accelerating globally. The Chinese market, in particular, is expected to nurture a group of high-quality DTC companies benefiting from its positions as a global leader in supply chain resources and talent, ”said Wang Jianhua, founding partner of Index Capital. , in a press release.
Prior to Series C and D, PatPat raised 300 million yuan ($ 46.3 million) under a deal led by Sequoia Capital China. Its first investors also include IDG Capital and the Chinese FreesFund.
In addition to Silicon Valley, PatPat operates from offices in San Francisco and Los Angeles in the United States, as well as in Chinese cities such as Shenzhen, Guangzhou, Hangzhou and Foshan. It also has local presences in Dublin, Manila and London.
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