Portfolio
Nature of Business
D.Phone is China’s largest chain retailer of mobile phones and accessories with extensive nationwide retail coverage across the country. Since its inception in 1993, D.Phone has developed a retail network covering 29 provinces and municipalities across China. It currently has over 1000 stores, more than 600 of which are directly owned stores, with the remainder being franchise businesses.
D.Phone's mobile phone suppliers include major foreign brands such as Nokia, Motorola, Sony Ericsson, Samsung as well as domestic vendors such as Lenovo and Changhong. The business is expected to continue its strong growth, both from selling new handsets to first-time customers, and from replacement handsets in more developed areas. Newly launched 3G network in China in 2009 will be another main driver for China handset market growth, hence will bring Dphone more business opportunities.
Investment Overview
We completed a US$22m investment in D.Phone in May 2006 and have supported the management team with the strategic roll-out of stores across China. 3i Partner Albert Xu has joined the Board and is working closely with the management team on strategy. We have also worked closely with the finance team on the execution of the business growth plan, budgeting, working capital and cash control.
Through our global network and sector expertise we have been able to introduce a number of mobile related business and industry players to D.Phone. Most notably David Ross, former CEO and co-Founder of The Carphone Warehouse, and Sanjiv Ahuja, former CEO of Orange.
In addition to this, our European TMT sector team invited the D.Phone management to attend 3GSM, Europe’s largest mobile and technology-led conference which provided a superb networking opportunity for the business.
