China Digest: Heilan Home takes 44% stake in babywear firm; Lanting Capital leads Series A in Motovis

Heilan Home has acquired a significant stake in China Yeehoo Group for $99.6 million, while Lanting Capital has led a new fundraising round in Chinese autonomous driving startup Motovis.

Heilan Home takes 44% stake in Chinese babywear maker

Shanghai-listed clothing firm Heilan Home has agreed to acquire a 44 per cent stake in babywear firm China Yeehoo Group for RMB660 million ($99.6 million), according to its regulatory filing.

Following the transaction’s completion, Hong Kong-based Best Kids International Ltd will be the largest shareholder in Yeehoo with a 46 per cent stake while Lunar Capital will own 10 per cent.

This deal will allow Heilan to expand into the baby apparel business, the company said.

China Yeehoo Group, founded in 1995, designs and manufactures baby products, including apparel, bedding, bath care and maternal goods.

It reported a net profit of RMB36.3 million in 2016, while it projects that net profit will exceed RMB120 million in 2018, RMB144 million in 2019 and RMB173 million in 2020.

Lanting Capital leads Series A in Chinese autonomous driving startup

Lanting Capital has led a Series A round worth tens of millions of US dollars in Chinese autonomous driving technology firm Motovis with participation from Keytone Ventures, according to local media reports.

After AI-Drive, DeepMap Inc, Hesai, Canaan, xPerception, WayRay and Zongmu Technology, it is the eighth autonomous driving-related startup that secured funding in China this year. These eight deals collectively saw over $130 million raised by the startups.

Motovis, which was founded in 2015, has developed advanced driver-assistance systems based on artificial intelligence and computer vision technology.

The startup said it had collected street data across 30 provinces in China as part of its preparation to commence its system. It has also signed an agreement with BAIC BJEV, an electric vehicle unicorn of Beijing Automotive Group, and expects to enter into production early next year, the reports said.

Both venture capital firms and big corporates like Alibaba, Tencent and Baidu have pushed the growth of the Chinese autonomous driving industry over the past few years. Chinese research firm Analysys said the industry is estimated to reach RMB121 billion ($17 billion) by 2020.

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China’s Baidu launches $1.5b autonomous driving fund