Mollybox, a cat food e-commerce platform run by Xolo (Cayman) Limited, has secured $13 million in a Series B financing round, co-led by DCM and Mars-backed venture capital Digitalis with participation from Unity Ventures, Seek Ventures, FJ Labs, Tekton Ventures and Long Capital.
Mollybox plans to use the funding to support its expansion of monthly ‘Surprise Box’ product, according to its announcement on Monday.
The startup has developed a unique business model in China’s pet food sector by launching a subscription-based service, which allows users to purchase through monthly, quarterly and annual subscription programmes.
Mollybox sends owners a ‘Surprise Box’ every month with various kinds of cat snacks and nutrition products to let customers explore its new range.
“With the continued trend of urbanization in China, our prospects continue to be very good. More and more young people are starting to keep pets. This is a good environment in which a subscription-based service can expand its business,” said Mollybox founder and CEO Ju Yi.
Mollybox currently serves around 30,000 subscribers, up from less than 2,000 subscribers in 2017. Meanwhile, it claims that its highest monthly turnover also surged from 1.8 million yuan in 2017 to 20 million yuan in 2018.
“After enabling the auto pay feature, we expect to achieve a user base of 200,000 subscribers in 2019 with the total sales income reaching 330 million yuan,” added Ju Yi.
Mollybox received 2 million yuan in its angel round from Unity Ventures in 2016, and landed 4.2 million yuan in a pre-Series A round from Unity Ventures, Long Capital and Hexi Capital in 2017.
In January 2018, the company completed its Series A financing with $3.8 million investment from DCM, Atom Ventures and Unity Ventures.