Draper Fisher Jurvetson, a US venture capitalist and DFJ Dragon, a DFJ affiliate fund in China are joined by Intel Capital China and a few other investors in the Series B financing of YeePay, an e-payment service provider in China.
DFJ is committing $1.5 million, and DFJ Dragon is committing $1 million in the Series B financing, Tony Luh, managing director of DFJ Dragon said. Luh will join the board of YeePay, as will Lee S. Ting, managing director of WR Hambrecht, a US financial services firm that also participated in the latest financing, according to a statement.
YeePay’s solutions enable consumers and businesses to make and receive payments over the internet, mobile and telephone. It lays claim to being the first in China to provide a single platform integrating both online and offline electronic payments. It has also formed strategic partnerships with local banks, internet companies and e-commerce websites as well as merchants.
Luh said: “YeePay is in a very interesting space, and we have been interested in the payment space because in China, we can anticipate the emergence of a winner or two, and that (winner) has yet to be determined. YeePay is a strong contender.”
“We have evaluated its technology extensively, started doing due diligence more than a few months ago, talking to the firm and industry experts in China, and outside.”
According to Luh, angel investors backed the first round of financing for YeePay, which is making good revenues, but is not yet profitable.
Luh is a founding partner of DFJ Dragon, which is advancing toward the final close, anticipated at the end of Novevmber, of a $100 million fund. The fund has had two closes, and made five investments which amounted to $7 million.