MeYou Secures RMB 1 Billion Series E Funding and Files for Domestic IPO

Aug 17, 2016 12:06 CST Updated 12:06

Recently, Meet You announced the completion of its RMB 1 billion Series E financing round and the dismantling of its VIE structure, marking its formal return to China’s domestic capital market. Prior to this, Meet You had disclosed its Q2 financial results, which showed that the company achieved a net profit of tens of millions of yuan in the second quarter, emerging as one of the first to navigate out of the capital winter.

没有图片.jpg

Meiyou's user base has surpassed 100 million.

Meiyou Female Assistant (formerly known as Xiyou Menstrual Period Assistant) was established in April 2013. It is a menstrual health service tool and female community platform oriented toward women, and it is a product under Xiamen Meet You Information Technology Co., Ltd.

Public information shows that Meet You entered the female market with a menstrual cycle management tool, boasting over 100 million users. It is the largest menstrual cycle management tool and the leading female community in China. In addition, Meet You has incubated the maternal and infant community “Youbaobao” and the fashion e-commerce platform “Youzijie.” Its products have a daily active user (DAU) base exceeding 7 million, making it the only company covering the complete female physiological cycle, from menstruation to pregnancy and childcare.

At its inception, Meet You secured millions of dollars in Series A financing from Xianfeng Changqing. In January 2014, it raised $15 million in Series B financing from Matrix Partners China and Xianfeng Changqing. In June 2014, it obtained $35 million in Series C financing from SIG, Matrix Partners China, and Xianfeng Changqing. In December 2015, it completed tens of millions of dollars in Series D financing led by Cathay Capital and Matrix Partners China.

Commercialization Path: Primarily Driven by E-commerce and Advertising

In terms of commercialization, Meet You has chosen e-commerce and advertising as its primary revenue streams. In the e-commerce sector, Meet You launched its community-based e-commerce platform, Youzijie, in June 2015, focusing on categories such as women’s apparel, beauty products, personal care, home goods, and maternal and infant products. By May 2016, less than a year after its launch, Youzijie’s monthly sales exceeded RMB 100 million. In the advertising sector, Meet You primarily features brand advertisements for daily chemicals, maternal and infant products, and cosmetics, generating over RMB 10 million in monthly advertising revenue.

美柚图片.jpg

An analysis of the industry’s characteristics reveals that the market has formed a “7-2-1” structure. As users do not require an abundance of menstrual cycle management tools, the Matthew effect in this market continues to intensify, with users increasingly concentrating on top-tier applications and data for lower-ranked products declining. According to the iOS download rankings, Meet You ranks approximately 100th among all apps.

Xiamen Meet You Co., Ltd. revealed that, as the project has achieved profitability at scale and represents a scarce investment opportunity in China’s capital markets, its financing process has progressed rapidly. Investor subscription has been highly enthusiastic, with nearly all existing shareholders participating in the follow-on investment.

Opinion: Meet You Created Two “Scarcities,” the Main Reason for Its Fundraising

According to industry experts, the fundamental reason behind Meet You’s substantial financing in a short period lies in its creation of proprietary “scarcity.” Currently, Meet You primarily operates three products: Meet You, You Baobao, and Youzijie. These three offerings cover the complete female physiological lifecycle, from menstruation to pregnancy and childcare, thereby positioning Meet You as a scarce product in the market. Meanwhile, Chen Fangyi, founder of Meet You, announced in an internal company-wide letter that the company had achieved profitability at scale in the second quarter of this year. Meet You’s ability to generate profits at scale, coupled with the dismantling of its VIE structure to return to the domestic capital market, has made it an extremely scarce investment target in China.

It is reported that this round of financing will not only facilitate the exit of US-dollar capital but also support the company’s development. Meanwhile, Chen Fangyi stated that Xiamen Meet You Co., Ltd. will continue to explore commercialization in areas such as community e-commerce, maternal and infant communities, and interactive advertising.