Leyou Secures $11 Million Series B Financing

Leyou, the leading multi-channel retailer of products and services for pregnancy, babies, infants and toddlers in China, recently announces the successful closing of $11 million series B investment from AsiaVest Partners. Proceeds from this round of financing will be used for nationwide expansion of Leyou’s Internet, catalog and retail businesses.

Leyou is the most influential retailer in the pregnancy and baby, infants and toddler market in China, with products ranging from pregnancy care to food, baby care, gears, toys, books/music/video and clothing for babies, infants and toddlers up to 6 years old. In 1999 Leyou established China’s first vertical e-commerce website in this sector.

Currently the Chinese market for pregnancy and baby care products is estimated to be US$30 billion a year. “We are very excited about the tremendous growth potential of China’s pregnancy and baby care market; and we strongly believe Leyou will achieve great success in this marketplace”, said Peter Hsieh, General Manager of AsiaVest’s Beijing Office. “As the lead investor in Leyou this round, we view the strengths of Leyou’s management team as the key competitive advantage in a market that is about to explode in revenue growth and profit opportunities. ”

Michelle Hu, Leyou’s CEO, states, “the proceeds from this round of financing will be used for our nationwide expansion, customer services upgrade and product line expansion. Currently Leyou’s business is mainly in Beijing. In the coming year, we will expand to another 10 cities, while opening 100 new stores and setting up a network of logistics centers that also service our catalog and e-commerce customers. In the following phase we will expand to another 100 cities throughout China, bringing the unique Leyou service to more consumers nationwide”.

In addition, around the seven core categories of products carried by Leyou, ranging from pregnancy care to food, baby care, gears, toys, books/music/video and clothing for babies, infants and toddliers up to 6 years old, Leyou will continue to deepen cooperation with product suppliers, strengthen team building, thereby enhancing overall customer service and operations management infrastructure.

Leyou is the leading national multi-channel retailer in China, carrying more than 10,000 products from 530 suppliers throughout 23 countries. Leyou’s multi-channel retail network extends from Internet to catalog and a network of retail shops throughout China.

Leyou employs the most advanced IT systems to deliver best-of-class services throughout its multi-channel retail network. For e-commerce and direct catalog sales, in 2007 Leyou launched same-day delivery service in Beijing – the only one of its kind – which has received strong customer feedback. Leyou’s retail stores throughout the country are all broadband-connected, providing full access to inventory and product information for every consumer in every store. Leyou’s advanced multi-channel retail infrastructure enables every consumer to select and enjoy the most optimal shopping experience anywhere.

For more information, please visit www.leyou.com