LemonBox, the supplement company selling American-style supplements to Chinese millennials, completed a pre-A round of $2.5 million led by Panda Capital and followed by Y Combinator.
WHO: LemonBox was founded in 2018 by Derek Weng to sell American health supplements to Chinese millennials like himself via online channels. LemonBox designed a WeChat-based lite app where users receive product recommendations after taking a questionnaire about their health conditions. The company customizes users’ needs by offering daily packs of various supplements.
WHY: The capital will be used to open a second fulfillment center in the Shenzhen free-trade zone as a follow-up to its Silicon Valley-based one to provide more stability to its supply chain. Investment will also be made to secure health-related certificates and adding Japan to its sourcing regions.
IN THEIR OWN WORDS: “In China, most supplements are sold at a big markup through pharmacies or multi-level marketing companies like Amway,” Weng said to TechCrunch. “But vitamins aren’t that expensive to produce. Amway and the likes spend a lot on marketing and sales.”
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