07.22.15
Jumei International Holding Limited, China's leading online retailer of beauty products, is providing BabyTree with a convertible loan and a revolving credit facility of up to RMB1.55 billion (US$250 million).
The principal of the convertible loan portion of the transaction could reach as high as RMB744 million (US$120 million) depending on the working capital needs of BabyTree and certain operating performance criteria being met. The loan will be convertible into a minority interest in BabyTree based on a pre-agreed formula. The revolving credit facility will be RMB806 million (US$130 million), and drawdown by BabyTree will also depend on the working capital needs of BabyTree and certain operating performance criteria being met.
BabyTree, at BabyTree.com, is the largest online parenting community in China, and is among the largest online parenting communities globally as ranked by traffic volume. Currently the DAU (daily active users) of BabyTree has surpassed 10 million. It has the mobile apps "BabyTree Pregnancy" and "BabyTree Footprints."
Leo Ou Chen, founder and CEO of Jumei, stated, "This strategic deal with BabyTree will strengthen our ability to create greater value in an important demographic. We believe this market has vast growth potential."
Allen Huainan Wang, CEO of BabyTree, added, "The funds from this transaction will be used to develop BabyTree's businesses, especially our e-commerce segment...We believe the cooperation will help us bring about significant changes in the online retail industry of parenting products."
The principal of the convertible loan portion of the transaction could reach as high as RMB744 million (US$120 million) depending on the working capital needs of BabyTree and certain operating performance criteria being met. The loan will be convertible into a minority interest in BabyTree based on a pre-agreed formula. The revolving credit facility will be RMB806 million (US$130 million), and drawdown by BabyTree will also depend on the working capital needs of BabyTree and certain operating performance criteria being met.
BabyTree, at BabyTree.com, is the largest online parenting community in China, and is among the largest online parenting communities globally as ranked by traffic volume. Currently the DAU (daily active users) of BabyTree has surpassed 10 million. It has the mobile apps "BabyTree Pregnancy" and "BabyTree Footprints."
Leo Ou Chen, founder and CEO of Jumei, stated, "This strategic deal with BabyTree will strengthen our ability to create greater value in an important demographic. We believe this market has vast growth potential."
Allen Huainan Wang, CEO of BabyTree, added, "The funds from this transaction will be used to develop BabyTree's businesses, especially our e-commerce segment...We believe the cooperation will help us bring about significant changes in the online retail industry of parenting products."