CDIB invests $25m in Chinese furniture company

CDIB Capital has invested in a mainland furniture supplier after taking a stake in a duty-free retailer last month.

CDIB Capital International, the private equity arm of Taiwan-based China Development Industrial Bank, has invested $25 million in Meilele, a China-based furniture and home décor retailer, according to a company statement.

The firm was unavailable for comment by press time.

Meilele has 100 furniture showrooms across 80 cities and has broadened its offerings to include home decor products such as linens, home accessories, renovation materials and lighting, the statement said.

CDIB's investment is intended to help Meilele rollout new showrooms, move into new product areas and improve supply chain management.

“We believe the company is well positioned to become the category leader in this vast but fragmented furniture industry in China,” said Victor Gao, managing director of CDIB Capital, in the statement.

In March, CDIB Capital closed an investment in a Dubai-based duty-free retail operator Flemingo, which is focused on emerging markets, according to a previous report from PEI. The exact amount of the investment was undisclosed, but the firm’s average investment size is between $20 million and $50 million. 

Last November, the firm invested in Smith-Cooper International, a US-based value-added distributor of pipes and valves that sources products from Asia, primarily China and Taiwan. 

CDIB Capital expected to launch a $500 million fund last quarter but decided to delay the launch due to the poor fundraising environment, PEI reported earlier.