China-based fashion e-commerce platform Aikucun has received RMB580m ($87.5m) in a series B round led by Legend Capital, the venture capital firm formed by conglomerate Legend Holdings, China Money Network reported on Monday.
Government-owned diversified holding company Xiamen C&D Corp and venture capital firm Eastern Bell Venture Capital also took part in the round.
Founded in 2017, Aikucun runs an online distribution platform that enables fashion brands to pass on excess stock to smaller online merchants which then sell items to consumers through channels such as messaging platform WeChat.
The company also helps merchants compete with larger e-commerce operations by providing pictures, descriptions, advertising materials and after-sales customer care.
Aikucun has signed up more than 1,000 clothing brands and approximately 100,000 shopping agents to the platform.
The funding will be used for research and development as well as an expansion in Aikucun’s headcount and the services it offers. Eastern Bell Venture Capital had previously led the company’s $15.5m series A round in January 2018.
Tony Wang, vice-president of Legend Capital, said: “WeChat’s ecosystem has brought a lot of new business opportunities. Aikucun has captured the real market needs to help brands reduce their inventories, and share profits with online shoppers and provide customers with good-quality goods with low prices.”