China Post-Tom e-commerce venture to step up expansion after new financing
Fundraising backs firm's growth hopes for partnership with mainland giant
Tom Group, which saw its net loss widen last year, expects its joint venture with China Post to significantly expand this year and become one of the mainland's leading e-commerce service platforms after the business raised US$110 million from its initial round of financing.
Ule, the Beijing-based venture founded by China Post and Tom in August 2010, has gained four new investors and put the e-commerce platform's valuation at US$830 million.
China Post remains Ule's largest shareholder, with a 44.24 per cent stake. Tom, the media conglomerate controlled by Li Ka-shing, owns 42.51 per cent, while the new investors have a combined 13.25 per cent. The new funding was completed last month.
Ken Yeung Kwok-mung, Tom's chief executive, yesterday told the South China Morning Post: "This new investment not only shows how vibrant the e-commerce market is on the mainland, but it proves that Ule's business model is working."
Ule provides a business-to-consumer e-commerce platform that supports online and offline store integration, distribution and logistics, and promotion to more than 5,000 merchants in 31 provinces.
Its gross merchandise volume last year rose to 1.43 billion yuan from about 500 million yuan in 2012.