Foshan Shunde Deerma Electronic Appliance Co., Ltd, a subsidiary of e-commerce company Guangdong Feiyu Electronic Commerce Group Co., Ltd, announced that it has raised a total of 380 million yuan ($54 million) in a Series B round of financing from Chinese cross-border private equity firm Cathay Capital, Fortune Capital and Jinyi Capital.
With this, the total capital raised by Deerma touches 1.21 billion yuan ($172 million), it said in the statement.
The latest round will be invested in product research, marketing network innovation and overseas market expansion.
Shunde-based Deerma designs and manufactures new-generation household appliances through the integration of its e-commerce platforms and offline channels
After raising 500 million yuan ($71 million) in a Series A round of funding from state-owned CITIC Group’s CITIC Private Equity Funds Management, Deerma had acquired Philips’s water purification business in the Greater China in June 2018. Besides, Philips granted Deerma a 20-year brand license to use its trademark.
Deerma claims that it has achieved 100 per cent annual sales growth for the past seven years.
Prior to the current round, Co-share Capital and Renaissance Capital made an undisclosed equity interest in Deerma in March 2020. Previously, in October 2019, Deerma had additionally raised 330 million yuan ($47 million) in a Series A+ round from OPPEIN, Genbridge Capital and Charisma Partner.
According to Ministry of Industry and Information Technology data, the Chinese electrical appliance market size stood at 200 billion yuan ($28 billion) as of 2019, up from 100 billion yuan ($14 billion) in 2018.
China’s top electrical appliance brands comprise Midea, Haier, Gree, Jiuyang, Longde, Deerma, among others.