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China’s Cathay Innovation Closes Its Second Fund at $792m

By DealStreetAsia / Jan 12, 2021 01:42 PM / Finance

Cathay Innovation, a multi-stage venture capital partnership affiliated to Chinese cross-border investment firm Cathay Capital, on Monday announced the closing of its second global fund at €650m ($791.81 million).

Cathay Innovation, an investor in Chinese social e-commerce platform Pingduoduo, had initially set a target to raise €500 million ($609 million) for the vehicle. By May 2020, it had completed raising $550 million.

Earlier in June 2019, the fund hit the first close at €320 million ($389 million). The second fund drew commitments from its existing French limited partners (LPs) including public investment firm Bpifrance, automotive supplier and technology firm Valeo, BNP Paribas, small domestic equipment manufacturer Groupe SEB, Paris Charles de Gaulle Airport and tyre manufacturing group Michelin.

Its other LPs include UAE sovereign wealth fund Mubadala, FMCG major Unilever, Natixis Bank, French sportswear retailer Decathlon, Accor Hotels, JCDecaux Group, AXA Tianping P&C Insurance, among others.

Cathay Innovation seeks to deepen its investments linking to digital innovation besides its core focus themes of healthcare, consumption and corporate services.

Cathay Innovation, which was launched by Cathay Capital in 2015, closed its maiden fund at €287 million betting on Europe, US, and China markets. With approximately 60 professionals across Paris, San Francisco, Munich, Tel Viv, Singapore and Shanghai, Cathay Innovation conducts equity investments targeting ticket sizes of €5-40 million.

With €520 million in assets under management, its debut fund has invested in over 30 startups including US neobank startup Chime, Spanish on-demand delivery platform Glovo, France’s car rental marketplace Drivy, Chinese social e-commerce platform Pingduoduo, KaiOS, Sidecar, and Finaccel.

Cathay Innnovation recently led a $55-million Series B round for US digital platform ZenBusiness and joined a $35-million funding in Swiss video consultation platform for pets FirstVet late last year.

In 2020, Cathay Innovation opened its first Southeast Asia office in Singapore ramping up efforts to invest in local growth-stage startups in digital health, logistics and fintech. Apart from Cathay Innovation, Cathay Capital operates two RMB-denominated funds in China – CarTech and Smart Energy.

Contact editor Marcus Ryder (marcusryder@caixin.com)

Related: BYD and Pinduoduo Among Asia’s Biggest Stock Winners in 2020


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