Chinese blind box toy brand Pop Mart is raising more than $100 million in a new funding round ahead of an initial public offering (IPO) in Hong Kong.

The funding is led by Chinese private equity firm Loyal Valley Capital, U.S. venture capital firm Sequoia Capital and China Renaissance’s New Economy Fund, Caixin learned.

The Beijing-based toy marketer plans to submit its IPO application to the Hong Kong Stock Exchange soon, according to people familiar with the matter. Pop Mart declined to comment on its IPO plan.

Founded in 2010, Pop Mart started as a retailer of lifestyle commodities, including toy, home, digital and beauty products. In recent years, the company shifted its focus to blind box toys, which are collectible figures in mystery packaging. Buyers won’t know what they get until they open the package.

Pop Mart operates about 140 retail stores and about 850 automated vending machines across the country. It also sells through online platforms.

With the original price of only a couple dollars for each blind box, most sought-after figures could be sold for 39 time their original prices. In 2019, 300,000 people traded blind box toys on Idle Fish, the largest resale platform in China, backed by Alibaba Group.

Pop Mart has had seven rounds of funding, with the last round valuing the company at $2.5 billion. The company was publicly listed in 2017 on the National Equities Exchange and Quotations, known as the new third board. It went private in March 2019.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)