China’s CITIC Capital backs $33.8m funding in Japanese e-commerce firm Reclo

Photo from Reclo's social media page.

CITIC Capital, the flagship alternative investment arm of Chinese financial conglomerate CITIC Group, has backed the ¥3.6 billion ($33.8 million) funding in luxury brand consignment app Reclo.

Tokyo-based Active Sonar, the startup behind the ecommerce firm, confirmed in a statement on its website that it has raised the amount from CITIC Capital, SBI Investment, and SBI Securities, with loans from Mizuho Bank.

Reclo allows owners of luxury brands to resell the items online via its platform. The platform enables owners to ask experienced appraisers for appropriate value and price of their items before reselling them online.

Second-hand branded items sold on Reclo include clothes, bags, watches, accessories, and jewelry. Buyers are attracted to the platform because some of the items can be priced as low as 90 per cent than the original price.

The platform also handles all the processes of selling online, such as receiving payments and shipping items to buyers, it said.

Since 2014, the startup has raised a total of $35.8 million in over three rounds. Mizuho Corporation and B Dash Ventures are existing investors in Reclo.

With the fresh funding and the backing of CITIC Capital, Reclo said it intends to further expand in China, where the luxury market has expanded to over 700 billion yuan ($97.7 billion) in 2017.

Reclo launched a Chinese version in October 2016, which boosted the company’s overall sales. It then established a local subsidiary in Shanghai last year when its China sales accounted for about 70 per cent of its total overseas sales.

The firm said China’s used luxury market has great potential because it currently accounts for just 1.4 per cent of the country’s luxury market.

“We see this as a winning opportunity and thus we accelerate our expansion in China,” Reclo said in a Japanese-language statement.

Aside from selling used luxury items, Reclo said it also plans to sell and collect branded products from around the world to build a global ecommerce platform.

CITIC Capital, one of the backers of the funding round, said in August that it raised $2.8 billion in its fourth China buyout fund, bolstering its ability to cut deals in the world’s second-largest economy.

The CITIC Capital China Partners IV, the firm’s biggest private equity fund to date, received “strong” interest from a mix of existing and new investors including pension and sovereign wealth funds, insurers and family offices.

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.