Month: January 2017

Chinese accelerator ZDream Ventures acquires startups database provider Xeler8

Chinese accelerator and venture fund ZDream Ventures has recently acquired the 100 percent stake in Xeler8 Inc., a Gurugam-based intelligence platform providing startups database to venture capitals and private equity firms.

The financial details of the transaction were undisclosed. But for ZDream, this is its third acquisition in India, after subscription based e-grocery startup Milkbasket and digital media platform iamwire.

Following this acquisition, the 12-member team of Xeler8 will also be absorbed into Beijing and Gurgaon-based ZDream Ventures.

Founded in 2015 by Rishabh Lawania and Keshu Dubey, Xeler8 offers a database of Indian startups to venture capital and private equity firms, providing them with curated information on their business models, funding, founder details, and more.

The startup tracker covers 47 different industries, helping investors to access their deal procedure while playing the role as a lead generation platform for corporates as well as a market research tool.

“We have plans on launching a tech media platform that will be backed by the Xeler8 database and the data will be open to all, in order to fuel up Indian start-up ecosystem,” said Jason Wang, the Founder and CEO of ZDream Ventures.

Another co-founder of Xeler8, Bishabh Lawania also commented on the acquisition, “This is an exciting time for us. We look forward to working with ZDream Ventures and offering unique and insightful data to the stakeholders of the Indian startup ecosystem.”

ZDream Ventures is a Y Combinator-like fund as well as an accelerator focusing on technology, media, and telecommunications industry.

By Vivian Foo, Unicorn Media

Chinese LeSports to raise US$439 million to focus on core video product

LeSports, the sports unit of cash-strapped Chinese Internet and technology conglomerate LeEco, is amid the process of raising RMB3 billion (about US$439 million) from an unnamed investor to support future growth.

Prior to this, LeEco has raised RMB15.04 billion (about US$2.18 billion) from Sun Hongbin, the chairman of Chinese property developer Sunac China Holdings earlier this week.

Following this deal, Sun Hongbin said that, “LeSports will pare back on sports broadcasting rights deals and focus on its core video product.”

Since March 2014, LeSports has become independent from LeTV.com and began distributing its businesses across the entire sports industry, combining events operations, streaming content, and smart devices with internet services.

Its business model revolves across broadcasting sporting events globally, The company has partnered with big sporting events and relevant players in the industry, broadcasting over 300 sporting events in mainland China, Hong Kong, and Macau, in accordance with their license application.

These sporting events include a two-year exclusive media rights for the Chinese Super League (CSL), a three-year in-depth strategic partnership with Major League Baseball in mainland China, Hong Kong, and Macau, as well as an exclusive live broadcasting rights for the English Premier League in Hong Kong from 2016 to 2019 and other major titles.

However, LeSports has entered into these broadcasting right agreements of English Premier League, the NBA, the Chinese Super League and ATP at an unexpectedly high price. In some cases, the media company has paid ten times more than its previous contracts.

Commenting on this, Sun Hongbin said that, “Costly broadcasting rights is an area where LeSports will significantly reduce future spending.”

Founded in 2014, LeSports last raised RMB8 billion (about US$1.2 billion) in March 2016 from HNA Group, Chinese celebrity investors Sun Honglei, Jia Nailiang and Liu Tao. Previously, the unit raised RMB800 million (US$122.9 million) in 2015 led by Dalian Wanda Group, with Yunfeng Capital and seven other venture capital firms and individual investors.

LeSports began paring back its businesses significantly at the end of 2016, after a year of rapid expansion and amid a lack of capital that is affecting its parent company, LeEco.

The company plans to reduce 20% of its current 1,000 employee workforce to focus on media content and Internet platforms while cutting back on smart devices and sports events management.

The latest proceeds from the new round will be used to help the company ease cash shortage and support growth.

By Vivian Foo, Unicorn Media

CDH-backed New Century Healthcare completes US$102 million Hong Kong IPO

New Century Healthcare, a Beijing-based pediatric, obstetric and gynecological healthcare provider backed by Chinese alternative investment firm CDH Investments, has on Wednesday completed a listing on the Hong Kong Stock Exchange.

The company shares were priced at HK$7.36 (US$0.94), that is at the midpoint of the share price guidance it issued for the 120 million shares which were within the range of HK$6.36 to HK$8.36

The hospital group has raised around HK$789 million (US$102 million) via the initial public offering in which it plans to use to open more hospitals and clinics in China’s major cities.

Specifically, the healthcare firm will further expand its coverage in Beijing and other first-tier cities and enhance its ability to provide high-quality medical services, to build up a world-class medical service institution.

“New Century Healthcare is one of the biggest children’s hospital operator in China,” said Huang Jingjing, a managing director at CDH’s innovation and growth fund. “It is a great addition to China’s public hospitals and fills a market void meeting demand from high-end clients.”

Founded in 2002, New Century Healthcare currently owns and operates three leading pediatric clinics in Beijing, including Beijing New Century (BNC) Children’s Hospital, BNC Womesn’s and Children’s Hospital and BNC Harmony Clinic.

The company said in its prospectus it focuses on the provision of mid to high-end women and children’s medical services and said it has accumulated in-depth expertise and experience in the public-private partnership arrangement with public hospitals.

Currently, there are 441 doctors in the group, among which more than 90 percent have obtained the attending physician title and above, possessing at least five years of pediatric outpatient service.

CDH Investments, which previously invested in Ciming Health Checkup Group, Luye Pharma Group Ltd. and a number of healthcare firms in China, held a 16.6% stake in New Century Healthcare before the IPO.

New Century Healthcare recorded earnings of RMB238 million, RMB249 million and RMB258 million from 2013 to 2015, respectively.

By Vivian Foo, Unicorn Media

Singaporean bitcoin startup CoolBitX raises US$200,000 from Midana Capital

Singapore-based CoolBitX Technology, the creator of wireless hardware wallet for bitcoins on Thursday has managed to raise S$280,000 (about US$200,000) from Malaysian venture capital firm Midana Capital Inc.

The transaction was made through the FundedHere crowdfunding platform, which facilitates both equity and debt-based crowd finance.

“FundedHere is pleased to provide a funding platform for innovative startups such as CoolBitX. We are always on the lookout for businesses with high growth potential and look forward to being a part of their growth,” said FundedHere’s Co-Founder and Executive Director, Agnes Siaw.

CoolBitX flagship product CoolWallet is in the size of a credit card and works in a similar way to e-banking tokens. That is when paired with CoolBitX’s smartphone app, it is able to take Bitcoins offline and stores the cryptocurrency in the hardware wallet. When users want to use the digital currency, they would have to request for a One-Time-Password and key it into their CoolWallet app.

Unlike other hardware wallets, which requires a computer or a connection to an electronic device to work, CoolWallet claims to be the first wireless external storage device that can be paired with smartphones to enable users to make purchases online using Bitcoins.

The company believes that such decentralised transactions in which Bitcoins transfers are never stored on the smartphone or transmitted over WiFi and internet servers will prevent online hacking.

With this funding, the Bitcoin startup is looking to use the capitals for further research and development, as well as for marketing itself to Taiwan, Japan, and the bitcoin community.

“Bitcoin is already transforming the way we make purchases but for a digital currency to truly take off, users need to be assured that it is both secure and convenient to use. With the support of Midana Capital through FundedHere, CoolBitX is well positioned to make sure Bitcoins are as accessible as a credit card and as secure as a bank,” said CoolBitX’s CEO and Co-Founder, Michael Ou.

Along with the funding announcement, CoolBitX also revealed that it intends to launch its decentralized Bitcoin exchange before the end of 2017.

This new platform will facilitate bitcoin trades from one CoolWallet to another through a trade matching engine. Users can also make fiat deposits through the platform – a money deposit Bitcoin buyers must make in order to purchase the cryptocurrency – on the platform.

Midana Capital focuses on innovative technologies including green-technology, F&B manufacturing, healthcare, Internet of Things, fintech and blockchain.

“Midana Capital is pleased to invest in CoolBitX, which has developed a unique security solution for Bitcoin transactions. We are confident that our investment in CoolBitX will reap rewards for our clients and contribute to the advancement of blockchain technologies in everyday transactions,” said Midana Capital Inc.’s Managing Director, Allan Tan.

By Vivian Foo, Unicorn Media

Chinese hotel management GreenTree Group to buy CVC-backed Da Niang Dumplings

Chinese fast food restaurant chain Da Niang Dumplings Holdings Ltd., since its acquisiton by CVC Capital Partners in 2013, is now being resold again to Chinese hotel group GreenTree Inns Hotel Management Group, Inc., according to an official statement posted on the website of Ministry of Commerce’s anti-monopoly bureau.

As per details of the acquisition, the online new announcement disclosed that a wholly owned subsidiary unit of the Shanghai-based budget hotel group is to acquire the 100 per cent stakes of Da Niang Dumplings, which operates over 400 restaurants across China.

Besides, it is also noted that GreenTree is acquiring the shares directly from Da Niang Dumplings, instead of CVC Capital, which goes to hint that CVC may have sold its control stakes in Da Niang Dumplings prior to this deal.

Da Niang Dumplings, following CVC’s acquisition of the Changzhou, Jiangsu province-based chain, has in recent years suffered from intense competition, frequent conflicts between its founder and controlling shareholders which resulted in a year-after-year declining performance.

The company’s founder Wu Guoqiang, who retained a 10% stake in Da Niang, said revenues declined by 10% in each of 2014 and 2015 is largely due to mismanagement, specifically because of the cost cutting efforts initiated by CVC. The fast food chain also has quite a frequent change of directors, having welcomed three new CEOs in a span of three years.

Founded in 2004, GreenTree manages and franchises over 2,500 properties in and outside of China. The hotel group, with no prior experience in the food and restaurant businesses, was reportedly one of the bidders for McDonald’s China and Hong Kong unit, which was acquired by CITIC Group and the Carlyle Group earlier this month.

Having successfully acquired Da Niang Dumplings, GreenTree could potentially realize synergies with the fast food chain as both businesses are targeting the lower end consumer market. GreenTree Inn’s most high-end hotel for the Green East is priced at 300 to 600 yuan range while Da Niang Dumplings prices are set between 25 to 34 yuan.

By Vivian Foo, Unicorn Media

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