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China clothes sharing start-up YCloset secures

US$50m in new funds from E-Commerce giant Alibaba

Mr Liu Mengyuan, YCloset CEO says, “YCloset will first-and second-tier cities in China, including Beijing,
continue to expand garment and accessory ranges Shanghai and Hangzhou, Zhejiang province, meeting
and offer diversified services. In the future, our demand for office, party, dating and travel clothing.
platform will become a one-stop shop.”
According to the company it has more than 15 million
YCloset is a leading Chinese garment sharing registered users and it also provides a wide range of
platform which has completed an undisclosed subscription plans making sure all needs are being
strategic fundraising round from the e-commerce catered to accordingly. For instance, it charges a
giant Alibaba Group Holding Ltd, to provide better monthly membership fee of 499 Yuan ($73; 62 euros;
catering to female users fashion needs. Proceeds £55), and users are able to rent an unlimited
from the new funding are going to be used to tap number of items during that period. It does not
furthermore into consumption scenarios, expand the charge additional fees for delivery and cleaning, and
algorithm system and also build its warehouse and users also can purchase garments they like via the
cleaning operation centers nationwide. This move platform.
marks Alibaba’s latest attempt to promote the
diversified development of its business. Investors have shown enthusiasm for the newest
addition to the sharing economy, pouring tens of
Mr Liu Mengyuan, YCloset CEO informed that the millions of dollars into it. Last year, YCloset received
company will cooperate with Alibaba’s flea market $50 million in a series C fundraising round led by
platform Xiaoyu, e-commerce platform Taobao, Alibaba Innovation Ventures, Softbank China and
Tmall, Alipay payments and other relevant platforms. Sequoia China.
Mr Liu Mengyuan, YCloset CEO said, “The market is Mr Li added, “However, there are also challenges
huge. Clothes will always top the agenda of almost ahead. Users will have concerns about hygiene.
every woman. Compared with buying items in a Other challenges include costs and how to keep
store, clothes rental services will allow women to sufficient inventory to offer better user experiences."
update their looks more frequently and wear more
dresses that they could not afford to buy." YCloset updates its inventory as per the season and
current trends. It has 4 storage and cleanup centers,
Beijing based YCloset brand was founded in 2015. It in Beijing; Nantong, Jiangsu province; Chengdu,
charges subscription fee to its users and allows the Sichuan province; and Guangzhou, Guangdong
users to rent clothes and accessories. The platforms province. Beijing-based Fornet, a leading domestic
target market are the female users, particularly those cleaning company, and Guangdong-based Tiantian
between the ages of twenty two and thirty, living in Inc are its technical strategic partners.

October/November 2018