China Digest: GalaxySpace, Mancando, DooLuu secure fresh funds

Ocean clouds seen from space. Source: NASA

China’s communications satellite producer GalaxySpace, automotive parts provider Mancando and parenting app DooLuu have raised new funding.

Private satellite startup GalaxySpace hits $704m valuation

Chinese communications satellite producer GalaxySpace has reached a valuation of over RMB5 billion ($704.82million) to become one of the most noticeable players in the country’s private aerospace industry after the company completed a new funding round.

Financial details of the investment were not disclosed. The round was led by JIC Technology Investment, a subsidiary of state-owned China Jianyin Investment, according to a recent company statement.

Shunwei Capital, the venture capital firm started by smartphone maker Xiaomi’s founder Lei Jun and Tuck Lye Koh, Boston-born investment company IDG Capital, as well as Chinese venture capital firms Legend Capital and Morningside Venture Capital, participated in the new round.

The private aerospace industry, emerged in 2015 in China, is ramping up efforts to catch up with well-funded foreign counterparts like Elon Musk’s SpaceX and Jeff Bezo’s Blue Origin. The investment marks the latest capital injection into China’s private aerospace sector, which has witnessed at least 36 such deals in 2018 with about one-third of them raised by startups at the angel and seed-stage, according to a report from Chinese industry intelligence platform FutureAerospace.

GalaxySpace was founded in 2018 by Xu Ming, the co-founder and former president of New York-listed mobile internet firm Cheetah Mobile. The company, now claimed to be one of the most valuable startups in the private satellite sector in China, developed the broadband communication satellite “Galaxi-I,” capable of automatically performing manoeuvres and then burning out in the atmosphere.

The startup will focus on developing a low earth orbit (LEO) communications constellation system and implementing it to application scenarios after this financing round.

Legend Capital leads $28m Series A+ round in auto parts supplier Mancando

Chinese automotive parts supplier Mancando announced on Monday that it has closed nearly RMB200 million ($28.18million) in a Series A+ round of financing led by Legend Capital, the venture capital arm of Legend Holdings.

Existing shareholders including Chinese supply chain-focused investment fund Eastern Bell Capital and early-stage investment firm Galaxy Capital participated in the new round. Oriza FoFs, a fund management firm affiliated with Oriza Holdings, also joined the round.

The investment came as the Chinese automotive aftermarket revenue is expected to record a compound annual growth rate (CAGR) of 7.7%, up from $290.44 billion in 2017 to $523.80 billion in 2025, according to a Research and Markets report.

During this period, the vehicles in operation (VIO) for Chinese passenger vehicles are projected to grow from 185 million units to 401.7 million units. New and used car sales in China, however, are likely to experience slower growth, recording a CAGR of 2.3% and 7.5% respectively.

Mancando, founded in August 2015 and formally known as Guangdong Santou Liubi Information Technology, leverages big data and mobile internet to serve as a B2B industrial internet platform for the distribution of auto parts. The company connects 130,000 vehicle repair plants with 1,600 auto parts suppliers across 18 provinces in China, according to a company statement.

Proceeds will be used to promote the expansion of regional warehouses, construction of 150 brick-and-mortar stores and partnership with 2,000 franchises. Mancando will also use the capital to launch self-developed auto parts brands and introduce overseas brands, said the company chairman Song Jibin.

The company has so far raised a total of over RMB400 million ($56.37million). Mancando closed RMB170 million ($23.95 million) in a Series A round from Legend Capital and Eastern Bell Capital in February 2019. The company also completed a RMB41 million ($5.77 million) Series pre-A round from Galaxy Capital in June 2018.

Sequoia leads Series B round in parenting app DooLuu

Enjoy Technology, the operator of Chinese parenting app DooLuu, has completed a Series B round of financing led by Sequoia Capital, representing the fourth investment raised by the newly-founded startup in the past one year.

Financial details of the deal remained undisclosed. Global venture capital firm GV Capital also invested in the new round, Chinese investment firm Beyond Capital announced in a statement on Monday. Beyond Capital served as the exclusive financial advisor of the deal.

Enjoy Technology, fully known as Hangzhou Enjoy Network Technology, was founded in late July 2018 by Wang Jiabin, a Peking University alumnus who formerly worked at Baidu and Alibaba. The company introduced a social networking app called “Dooluu” for parents and preschool teachers to track and share photos, videos, and posts of children’s daily life.

Over 200,000 preschool teachers and more than four million users have installed the app in the past six months since the product launch in February 2019, according to a statement. “We expect to book 10 million users and three million daily active users (DAUs) in the first half of 2020,” said the company founder and CEO Wang Jiabin.

Enjoy Technology raised tens of millions of US dollars in a Series A round in April 2019. The company closed a Series pre-A round worth tens of millions of yuan in October 2018 and an angel round worth nearly RMB10 million ($1.40 million) in July 2018.

 

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.