Baoyun Group, a distributor of wines and whiskies in China, has raked in 600 million yuan ($94 million) in a Series A round of financing led by Country Garden Venture Capital, the investment arm of Chinese property developer Country Garden.
The funding attracted a new investor, Being Capital, while existing investors Matrix Partners China, and Dayone Capital, re-upped in the round the company said in a statement.
Baoyun Group, which was set up in May last year, has so far secured nearly 1 billion yuan ($157 million) in its rounds of financing — angel, pre-A, pre-A+, Series A. Its backers include state-backed CICC Capital, internet investment firm Crystal Stream, and Foho Investment.
With the fresh proceeds, Baoyun aims to develop its innovative pipeline products and extend its brick-and-mortar stores, as well as facilitate product lines in partnership with alcohol brands.
With headquarters in Northern China’s Tianjin city, Baoyun runs as an integrated platform offering alcohol products, with liquors such as Wuliangye and Maotai at the core. Aside from operating as a distributor, Baoyun has also launched its proprietary brand through online and offline channels.
“We are positive toward Chinese emerging brands involved in consumption. Being a much sought-after sector, we will continue to bet on liquors,” said Country Garden Venture Capital managing director Silong Li.
Chinese investors covet the liquor sector. Fosun International was seeking to buy a 70% stake in liquor and spirits maker Sichuan Tuopai Shede Group for 4.53 billion yuan ($694 million) late last year, while Fosun’s subsidiary Shanghai Yuyuan Tourist Mart also planned to pick up a 30%% stake in Jinhui Liquor earlier in July 2020.
Additionally, tech giant Tencent had invested an additional $80 million in online liquor retailer Yijiupi in 2019. In 2018, Tencent had joined hands with Meituan Dianping, China Everbright, and Source Code Capital ploughing $200 million funding in Yijiupi.