China Digest: Banyan backs Relashenghuo; Cathay Innovation invests in MagMode

Image from Pixabay

Spicy red crayfish chain operator Relashenghuo has raised a series B round to expand its offline shops while Cathay Innovation has led  the second series B round in a men’s fashion incubator MagMode.

Banyan Capital leads series B in Relashenghuo

Relashenghuo, a chain store operator of spicy red crayfish, has raised RMB140 million ($21 million) in a series B round led by Banyan Capital.

Other investors include Matrix Partners China and N5Capital, according to China Money Network’s report citing the company’s announcement.

The market for spicy red crayfish was worth around RMB56 billion ($8.4 billion) last year. The media reported that another spicy red crayfish restaurant chain also closed nearly RMB100 million ($15 million) financing round from Tiantu Capital.

Relashenghuo offers an integrated supply chain from raw materials, processing and cooking, logistics and offline stores. It also provides delivery services to clients.

It plans to use the proceeds to expand offline stores and improve its big data technology to analyse customer demand and manage supply chain more efficiently. Prior to this round, it completed an undisclosed sum in series A funding round from N5Capital.

Cathay Innovation backs $15M series B in MagMode

Cathay Innovation has led a $15-million series B-2 financing round in a men’s fashion brand incubator MagMode with participation from Sinovation Ventures.

The company completed a RMB50 million ($7.5 million) series B-1 round led by IDG Capital Partners in May and secured nearly $10 million funding led by Ventech China last year.

MagMode has opened three stores in Beijing and plans to open more in other major cities in China. It incubates creative men’s fashion designers targeting middle-class consumers. The company also builds up a mobile app featuring the latest international fashion trends and concepts.

Cathay Innovation, a venture capital fund created in affiliation with Cathay Capital Private Equity, closed its first investment vehicle for a total of $320 million last month.

It was set up to support digital entrepreneurs through a platform in North America, Europe and China. It is committed to investing in 20-25 innovative companies with initial commitments between $3 million and $15 million.

Also read:

China: Yixia Tech $500m Series E; Magmode closes $10m venture round
China: Banyan Capital raises $725m across two funds
Cathay Innovation closes debut VC fund at $320m