Chinese venture capital firm Buhuo Ventures has reached the first close of its second RMB-denominated fund at 700 million yuan ($100 million) as the company reloads ammunition for opportunities in early and growth-stage startups in the innovative supply chain and supply chain-driven consumer fields.
LPs in the first close include institutional investors, government-guided funds, funds of funds (FOFs), and family offices, among others, Buhuo Ventures announced in a WeChat post on Friday. About half of the dry powder was contributed by the firm’s existing LPs.
The second yuan fund has already invested in six startups. It made its first bet in Guoquan Shihui, a Chinese convenience store chain operator that provides hotpot and barbecue ingredients in residential communities.
Earlier this week, the startup announced the completion of a $60-million Series C round led by consumer investment fund GenBridge Capital. Buhuo Ventures, which re-upped investment in the latest round, said that the company was given a valuation of over $500 million.
Founded in September 2017, Buhuo Ventures currently manages over 1.3 billion yuan ($186 million) across two RMB-denominated funds and primarily invests in early and growth-stage companies in the innovative supply chain startups, supply chain-driven consumer services providers, and technologies that can replace human labour.
The three-year-old firm has so far backed over 30 companies. Four of its portfolio firms are valued between $500 million and $2 billion, including Guoquan Shihui; business-to-business (B2B) engineering machinery rental service Zhongneng United; omnichannel smart retail solutions developer iBOXCHAIN; and Carzone, an automotive aftermarket services firm also backed by Warburg Pincus and Alibaba co-founder Jack Ma’s Yunfeng Capital.
Beijing-based Buhuo Ventures said in the post that it has two portfolio firms valued at above $200 million, and seven valued at around $100 million, as well as two planning to launch their initial public offering (IPO) work in 2021.