China’s consumption-focused BA Capital closes $146m RMB fund

Shanghai, China

BA Capital, a Shanghai-based venture capital firm with a focus on the consumption industry, has closed its second RMB-denominated fund at 1 billion yuan ($146 million), the firm announced on Thursday.

The fresh fundraising comes after it raised a $100 million, dollar-denominated fund earlier this month, according to local media reports.

The new fund’s limited partners (LPs) primarily come from funds of funds (FoFs) — accounting for 60% of the 1 billion yuan capital — and private enterprises in the internet and consumer products industries.

“We will continue to bet on leading consumer brands and products. Not only will we insist on [the small but mighty] investment strategy, but we will also increase the amount of investment toward distinguished projects,” said David He, managing partner, BA Capital, in the announcement.

Co-founded by three managing partners Feng Chen, David He, and Michael Zhang in 2016, BA Capital has exclusively entered into consumption-focused investments. Over the past four years, BA has provided financial support to 15 brands including pop culture and entertainment products developer POP MARK, new generation tea drink player HEYTEA, healthy yoga product provider Simple Love, and soft drink company Yuan Qi Sen Lin (Beijing) Food Technology Group, among others.

According to a press release on August 4, BA Capital along with a clutch of leading investors — including Matrix Partners, CMC Capital, and Kamet Capital — had collectively poured 1 billion yuan into Chinese online-to-offline new retail business KK Group’s Series E round. 

BA Capital is launching an early-stage, RMB-denominated fund in a bid to help more emerging startups in the consumption sector, it had said. 

This month, many Chinese VCs closed RMB funds. Morningside Venture Capital and Shanghai Panlin Capital Management each closed RMB funds worth around 1 billion yuan, while Temasek Holding-backed Vertex Ventures China also fully closed its latest RMB fund at 3 billion yuan ($438 million).

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.

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.