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Youku.com, one of the largest Chinese video websites, said it has raised $40 million in its latest round of funding, and signalled that it expects to raise up to $40 million more money before the round is over.

The round was led by Chengwei Ventures and the first closing was raised entirely from existing investors. Besides Chengwei, those investors include Brookside (Bain) Capital, Maverick Capital, and Sutter Hill Ventures. Youku said is in active discussion with other potential investors over a second tranche.

The company has raised $110 million in cash funding and $10 million in venture debt.

This latest round of funding will be used to syndicate professional media and produce Web-based content, to further enhance user experience, and on both PC-based and mobile R&D, according to Youku founder and CEO Victor Koo.

Youku said it works with over 1500 content license-holders to deliver professionally-produced programming. Youku said it has attracted 350 brand advertisers to date, and the company’s gross revenues for 2009 will surpass RMB 200 million.

Youku says it had 149 million unique visitors accessing the site from home or office PCs and 57 million accessing from Internet cafes during the month of October 2009, according to Shanghai-based Internet research firm iResearch. iResearch also reported that Youku users spent a total of 229 million hours on the site in October.