Xingyun Group, a seven-year-old startup that helps Chinese makers of everything from Bluetooth speakers to laundry detergent sell directly to overseas consumers, is in talks with investors to raise $800 million, and it is seeking a pre-money valuation of $5 billion, according to two people with knowledge of the matter. The startup is capitalizing on the accelerating growth of Chinese manufacturers that use the marketing power of Instagram and TikTok to reach customers outside China, including in North America.
Shenzhen-based Xingyun, which has more than 3,000 employees worldwide and subsidiaries in over 70 countries, has become a major player in China’s e-commerce sector, operating behind the scenes to provide sellers with services ranging from logistics and inventory control to influencer marketing on social media, promoting foreign brands in China and Chinese products overseas. Its fundraising talks come after it raised $600 million at a valuation of $3 billion in April in a funding round led by Yunfeng Capital, Alibaba founder Jack Ma’s private equity firm. B Capital Group, a venture capital firm led by Facebook co-founder Eduardo Saverin, also participated in that round.