Chinese e-commerce live streaming platform Aiguang raises $20m in financing

Chinese e-commerce live streaming platform Aiguang Platform has secured $20 million in a new round of equity financing from two institutional investors at a post-money valuation of $200 million.

The transaction of the new round was completed on June 23, 2020, said China Youzan Limited in a recent filing with the Hong Kong Stock Exchange (HKEX). Hong Kong-listed retail technology service Youzan’s equity interest in Aiguang was diluted to 9 per cent post the investment.

Information of investors in the new round was not disclosed. Aiguang did not immediately respond to DealStreetAsia’s email inquiry on Friday, a public holiday in the mainland.

With the fresh capital injection, Aiguang saw its valuation quadrupled in less than one month. The company was valued at $50 million after it closed an investment from Youzan on June 8, 2020, according to a separate filing with the board earlier this month.

The previous round gave Youzan a 10 per cent stake in Aiguang’s operating firm Guang Holdings, representing 2.94 per cent of the voting power at any general meetings of the company.

Operated by Hangzhou-based Guang Holdings, Aiguang serves as a live streaming and short video platform that facilitates online product promotion for e-commerce businesses. Its corporate customers include Chinese electronics provider TCL, textiles and clothing firm Youngor, skincare brand AFU, and textile supplier Beyond Home Textile, among others.

Youzan, which mainly provides Chinese merchants with product promotion and marketing solutions on social networks, received nearly $30 million from search engine giant Baidu in August 2019.

The company also sold a 6.7 per cent stake, or over 1 billion shares, to Chinese social and gaming giant Tencent for HK$549.5 million ($70 million) in April 2019.

The company raised HK$202 million ($26 million) in an initial public offering (IPO) in Hong Kong in April 2018. It booked 373 million yuan ($53 million) in revenue in the first quarter of 2020, up 48.9 per cent compared to the same period of 2019.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.