Vipshop Bags $20M To Bring Flash Sales To Chinese Consumers
Chinese venture capitalists are buying into the country’s “flash sales” membership-based retail websites, as online shoppers in the country get a taste of steep discounts on the gilded life through offerings from retailers like newly funded start-up Vipshop.
The Beijing-based company has raised $20 million from DCM and Sequoia Capital China in its first round of venture funding. The capital will enable the company to expand its business offering brand-name clothes, accessories, makeup and home furnishings through time-sensitive online discounted offers.
The company has 1.5 million members across China and is one of a handful of start-ups taking the model popularized in the U.S. by companies such as Groupon Inc. and Gilt Groupe Inc., European companies like Spanish internet retailers BuyVip GmbH and Privalia Venta Directa S.L., or the French site Vente Privee, which is backed by Summit Partners LLC.