Matrix-backed Chinese e-commerce platform Plum raises $20m in Series B+: Report

Plum, an e-commerce platform for second-hand fashion products, has reportedly raised $20 million in its Series B+ funding round backed by major investors, including Japanese internet company Recruit.

According to a 36Kr report, the Beijing-based startup also got the backing of previous investors such as Matrix Partners China, Qiming Ventures, and Unity Ventures.

Plum provides an e-commerce platform that offers filming, sales, customer service, and a full set of consignment services to users who want to sell their second-hand fashion products.

The startup has so far raised a total of about $58.4 million in funding over six rounds. In August 2018, Plum raised another $20 million from IDG Capital, Qiming Ventures Partners, Matrix Partners China, K2VC, and UnityVC.

With the fresh funding, Plum will reportedly focus on further building its brand and upgrading its services to boost the platform. In the past six months, the platform has reached a five-fold rapid growth in Gross Merchandise Volume, according to the company.

China’s luxury market considered as one of the world’s biggest, has seen the rise of ecommerce firms that focus on brand new and used items.

According to data cited by Japanese used luxury brand consignment startup Reclo, China’s luxury market has expanded to over 700 billion yuan ($97.7 billion in 2017. Notably, the market for used luxury in China currently accounts only for just 1.4 per cent of the country’s total luxury market.

Early this week, Reclo announced that it has raised ¥3.6 billion ($33.8 million) from CITIC Capital, SBI Investment, and SBI Securities as it plans to further expand in China.

In July, Xiahongshu, a Chinese ecommerce and social media startup backed by internet giant Alibaba, was reportedly raising as much as $500 million from investors including SoftBank’s Vision Fund, Sequoia Capital China, and Hillhouse Capital.

Xiaohongshu, which literally means Little Red Book, helps users discover and buy luxury goods from overseas, share shopping tips, and exchange fashion ideas. It was founded in 2013 by Charlwin Mao and Miranda Qu.