Dmall, a Chinese provider of digital solutions to traditional retailers, has completed a Series C funding round at 2.8 billion yuan ($418.5 million).
The Series C round was jointly led by an equity investment platform of China’s Industrial Bank and Chinese government fund China Structural Reform Fund, said Dmall’s president and co-founder Zhang Feng at the Third Beijing Consumer Goods Expo & Digital Retail Summit in Beijing on Friday.
“Upon the completion of the Series C round, we plan to invest over 1 billion yuan ($149.4 million) into our R&D system to finance the continued iteration of retail-focused federated cloud, further improvement of user experience, and the development of new businesses like IIoT (Intelligent Internet of Things) for retail,” said Zhang.
Hengan International, China’s largest producer of sanitary napkins and diapers; Lenovo Capital and Incubator Group, part of Chinese computer manufacturer Lenovo Group; government-financed Futian Guiding Fund; China’s Tianya Capital and other investors participated in the transaction.
Existing shareholders Tencent, Beijing-based investment firm IDG Capital, and Hong Kong-based financial institution CMB International re-upped in the deal.
Tencent and Lenovo Capital confirmed the information of the Series C round through an email reply to DealStreetAsia. Dmall and other investors did not immediately respond to requests for comments.
Leveraging Tencent’s digital retail capabilities powered by cloud computing, AI, WeChat mini-program, and WeChat Pay, Tencent and Dmall will “further strengthen collaboration and synergies” in the smart retail space through ways including the construction of more powerful online retail solutions, said Xia Yao, executive director at Tencent Investment.
Tencent had backed Dmall’s Series B round in 2018.
Founded in April 2015 with an angel investment of $100 million from IDG Capital, Dmall mainly provides digital solutions for fresh produce e-commerce and online-to-offline (O2O) retail to traditional retail enterprises in China.
The Beijing-based firm has forged cooperation with over 120 operators of chain stores and supermarkets in China as of late October 2020. In November 2019, it had announced a plan to boost the number of Dmall-enabled shops to one million in the following five years.
Dmall allows over 150 million consumers to purchase products from retailers like Metro, RenRenLe, and Beijing-based Wumart, which is also backed by IDG Capital, through online channels including the Dmall mobile app. The app’s monthly active users (MAU) reached 18 million as of late October.
It currently has over 2,000 employees, over 60 per cent of which focus on R&D.