Xiu.com, the Chinese e-commerce site that sells Dolce & Gabbana watches and other luxury goods, said it received $100 million from two private equity firms to boost distribution and add more warehouses as business expands.
U.S. private equity firm Warburg Pincus LLC led the investment, with additional funding from the China unit of Kleiner Perkins Caufield & Byers, which also invested $20 million in March, Xiu.com said an e-mailed statement. It didn’t provide further details.
The Shenzhen-based online marketplace may quadruple sales to more than 1 billion yuan ($156.6 million) this year, according to the statement, which cited Xiu.com Chief Executive Officer Ji Wenhong. The transaction value of online luxury goods sales in China may reach 16 billion yuan this year, according to a report by Beijing-based research firm Analysys International.
China is set to become the world’s third-largest luxury market in five years, Bain & Co. said May 3. Mainland China will remain the fastest-growing market for luxury goods in 2011 as sales rise 25 percent to 11.5 billion euros ($16.6 billion), the Boston-based business-consulting company said.
Xiu.com, which began in 2008 and claims to be China’s No. 1 e-commerce site for luxury goods, offers products from more than 3,000 brands, according to its website.