China’s Suning.com bags $915m for its newly launched ecommerce platform

Yunwang Wandian, the newly established subsidiary of Chinese retail giant Suning.com, announced it has raised 6 billion yuan (US$915.5 million) in investment, according to a filing on the Shenzhen Stock Exchange.

Photo credit: Suning.com

The funding came from investors that include the Shenzhen Capital Group, SenseRobot Management, and an investment fund backed by the Shenzhen Luohu government. A fund managed by Beijing-based YengYun, as well as a wholly owned subsidiary of Hong Kong-based Central China International, among others, also participated in the round.

Suning said it launched Yunwang Wandian during the Singles’ Day shopping festival to integrate its online businesses. The new entity provides consumers, merchants, retailers, and suppliers with ecommerce and online retail services, as well as supply chain, logistics, and after-sales services. Suning’s offline shop will also sell on the new ecommerce platform, which is supported by Suning’s supply chain, logistics, and IT infrastructures.

Valued at 25 billion yuan (US$3.8 billion), Yunwang Wandian will use the new funds for its customer acquisition, research and development, and operations.

Established in 1990 and based in Nanjing, Suning is an online and offline retail store that sells consumer electronic products and home appliances.

It goes up against local rival Gome, which raised US$200 million from social commerce firm Pinduoduo in April and US$100 million from ecommerce giant JD.com one month later.

Currency converted from Chinese yuan to US dollar: US$1 = 6.55 yuan.