Ponhu-Luxury, which operates TRUETRUE (www.52Panghu.com), a trading platform for second-hand luxury goods, has raised 100 million yuan (around US$15 million) in a Series A funding round.
The investors were led by Trinity Capital and include 1898 Venture Capital and Shenzhen Yizan Investment Management, the Hong Kong Economic Journal reports.
The proceeds will be used in strengthening the brand, facilitating team-building and upgrading the technology of its trading platform, apart from opening chain stores in second- and third-tier cities across mainland China.
Founded in 2015, Ponhu-Luxury was initially a customer-to-business-to-customer (C2B2C) sourcing platform for second-hand luxury goods, offering personal and corporate services including payment transactions as well as authentication and valuation of goods for buyers and suppliers. The commission paid during the transactions becomes the company’s source of revenue.
In 2017, the company launched a one-stop service platform called TRUETRUE, which draws its customers via its mobile app. It also runs brick-and-mortar stores in about 10 mainland cities such as Beijing, Shanghai and Hangzhou, offering services such as maintenance, ordering, leasing and auction.
The company has attracted more than 160,000 customers as of December 2017. Its monthly sales amount to about 25 million yuan.
According to Ponhu-Luxury, goods obtained through the mobile app account for 15 percent of the total value of all its collected goods, indicating the platform’s huge potential for development.
The company said it plans to establish partnerships with small shops, noting that its trading platform can reduce the shops’ expenses such as rental and maintenance costs.
Such partnerships could draw more customers, thus leading to a win-win situation.
In a recent report, global consultancy Bain & Company said the core market for personal luxury goods hit record-high sales of 262 billion euros (US$320.35 billion) in 2017. Chinese nationals account for around 32 percent of the global sales.
This article appeared in the Hong Kong Economic Journal on Jan 16
Translation by Jonathan Chong
[Chinese version 中文版]
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