Xiu.com, a Chinese luxury and fashion ecommerce website, this morning announced that it has raised $20 million from Kleiner Perkins Caufield & Byers (KPCB), confirming a report published last week by the Wall Street Journal.
It’s the shopping website operator’s first round of VC funding.
In a statement, Xiu.com founder George (Wenhong) Ji unsubtly points out where the inspiration for the venture came from, but also why the future looks bright for his company:
“We were inspired by many successful B2C fashion websites in U.S. and Europe, and compared with them, we still have at least 1,000% growth potential in China”.
Ji says the proceeds of the funding will help Xiu.com improve its negotiating and purchasing ability with the major, grasp better cost advantages and thus bring more luxury and fashion brands into China
Xiu.com was founded in March 2008, and self-reportedly follows a “Reverse B2C” strategy, offering middle-to-luxury brand name fashion products – clothing, shoes, bags, ornaments, cosmetics and home decor – to China’s middle class. The company boasts 10 buyer offices in New York, Los Angeles, Miami, Australia, Paris, London, Italy, Korea, Hong Kong and Japan.