(Yicai Global) Sept. 25 -- Mr. Choi Patisserie recently landed about CNY100 million (USD14.6 million) in its A-round funding from New Vision Capital.
This is the first financing the Shanghai-based company has done in the past nine years. Proceeds will go to bolster its supply chain, open more stores, expand delivery coverage and improve its online e-commerce and membership services, online news portal 36Kr reported today.
The report offered no further details.
Mr. Choi Patisserie formed in 2009. It targets high-spending groups, offering additive-free, high quality desserts. It added light and quick meals to its line last year. It now has five stores in Shanghai and Hangzhou.
The firm targets high-spending groups, so it opens stores mainly in ritzy shopping malls. Each store covers 400 to 500 square meters. The price of the average transaction is about CNY120 (USD18), and the company offers about 40 varieties of big cakes, small desserts and gift-box products, per data from Meituan-Dianping's e-commerce website.
Though rents are high in its outlets, sales figures are also because customers' spending power offsets the higher rent, said Linda Wang, its founder.
The bakery relied on word-of-mouth advertising in its early phase and gradually built up its reputation that way. Celebrity birthday cakes and branding activities also attract customers without advertising. It is now also seeking marketing cooperation with cosmetic brands.
Editor: Ben Armour