Apparel / Textiles & Accessories

On July 19th, PatPat, the world's largest children's wear DTC (direct to consumers) brand, announced the completion of US$510 million in Series C and Series D financing. Among them, the Series C financing was jointly led by Capital Today, General Atlantic, and CDH Baifu, followed by SIG, Ocean Link, and Capital Capital. The Series D financing was led by DST Global, followed by Pan Atlantic Capital, Ocean Link, and GGV Jiyuan Capital.

Prior to this, PatPat has repeatedly won the favor of investment institutions such as IDG Capital, SIG Hainer Asia, Sequoia China, and Fengrui Capital, and the lineup of shareholders can be described as luxurious. Up to now, PatPat has refreshed the largest single financing amount disclosed in the domestic cross-border e-commerce industry, and has officially entered the ranks of Internet unicorns.

Public information shows that PatPat, established in Silicon Valley, USA in 2014, is the world's largest and fastest-growing children's wear DTC brand, with users covering more than 100 countries and regions around the world. In terms of competitive advantage, PatPat said that it has used "big data + AI technology" to fully stimulate management and operational efficiency in terms of supply chain, front-end operations, and quality control.

It is worth mentioning that in the Q4 2020 ranking of the top 100 Chinese overseas social platforms for overseas social platforms, PatPat ranks top 1 in the e-commerce category and Top 9 in the overall list, second only to brands such as TikTok, Huawei, and Xiaomi. PatPat is a big V account with 6 million+ fans on Facebook. It has maintained rapid growth for a long time. It has reached global cooperation with many top global celebrity IPs, and its international influence is increasing.

In addition, according to a number of authoritative market research results, PatPat ranks first in the user recommendation index among all children's clothing brands in the United States, firmly occupying the minds of American consumers.

In the next strategic plan, PatPat will use the strong brand effect in the European and American markets to enter the Middle East and South American markets.

In terms of the team, the three partners Wang Can, Gao Can, and Hu Meng all graduated from Carnegie Mellon University (CMU) computer-related majors, and have accumulated rich work experience in Silicon Valley high-tech companies such as Oracle and Amazon. There is no shortage of global-level executives from Fortune 500 companies.

Focusing on the field of children's clothing, the latest data shows that China's children's clothing market has reached 229.196 billion yuan in 2020. From 2015 to 2020, the domestic children's clothing market has a compound annual growth rate of 10.4%, making it one of the fastest growing tracks in the apparel industry. Due to the large volume but low concentration of China's children's shoes and apparel market, existing players are mainly out-of-line brands, and inventory is still the reason for the weak growth of the industry's marginal profit.

From the perspective of capital, with the continuous implementation of three-child and even future childbirth incentives and subsidies, the capital market favors children's tracks. In June of this year, Star Alley, a children's clothing brand founded only 2 months ago, announced that it had received tens of millions of yuan in angel round financing from Xianfeng Evergreen.