Chinese online shoe retailer OkBuy.com announced yesterday that it has raised $17 million in a second round of funding from Sequoia Capital, Intel Capital, and Draper Fisher Jurvetson.
The company, which can be best described as China’s equivalent of the online retailer Zappos, says it will use the funding to increase its stockpile portfolio and product range. An increased range of products is necessary since variety directly affects the profitability of e-commerce companies, according to the company’s founder Lu Ming. He also notes that OkBuy.com has an experienced buying team. The funding will go towards team formation and warehouse construction as well.
OkBuy.com has already built large storerooms in Beijing and Guanghzhou, and it also plans to set up more in northeast and east China to have five major storage locations by the end of the year.
Sequoia Capital raised $1 billion for two new private equity funds in China earlier this year, and it previously invested $35 million in Zappos before it was purchased by Amazon. (Zappos founder Tony Hsieh said earlier this year that Sequoia pressure directly led to the Amazon purchase.) With OkBuy.com, Sequoia certainly seems to be hoping for repeat success in two major online markets.
The site was founded in 2007, and landed $10 million from Sequoia Capital in its first round of funding.