(Yicai Global) May 8 -- Chinese e-commerce firm Beidian Technology has completed a funding round worth CNY860 million (USD127 million), some of which it plans to spend on marketing to stand up against competitors such as Pinduoduo and Little Red Book.
Beidian secured funding from Sequoia Capital China, Hillhouse Capital Group, IDG Capital and Sinovation Ventures, the Hangzhou-based firm told media outlet Lieyunwang.Com. The company will use the proceeds to upgrade its supply chain and enhance the user experience by leveraging Big Data and artificial intelligence to strengthen information security and product marketing, it added.
The Chinese e-commerce market has expanded from the early giants of Alibaba Group Holding's Tmall and JD.Com to give room for new, more niche-serving platforms such as Pinduoduo and Little Red Book. These, as well as Beidian, rely on users sharing their purchases in social media.
Beidian's monthly active users increased by five-fold to 13.3 million in the first quarter, ranking No. 1 in terms of growth among Chinese mobile retail players, according to data from QuestMobile.
Founded in 2017, Beidian mainly offers household items, clothing and foods.
Editor: Emmi Laine