China Digest: Boyu leads funding in ChengHome Apartment; Legend invests in Tongcheng Life

Ship and hotels in Hainan,China

China-focused private equity firm Boyu Capital has led a $300 million Series A round in ChengHome Apartment, while Legend Capital along with others have invested $100 million in Tongcheng Life.

Boyu Capital leads $300m funding in ChengHome Apartment

China-focused private equity firm Boyu Capital has led a $300 million Series A round in ChengHome Apartment, a hotel and serviced apartment brand, backed by Boston-born investment firm IDG Capital, China Money Network reported.

Other investors who participated in the round include Huazhu Hotels Group, serviced residence owner-operator The Ascott Limited, CCB International, an investment services company owned by China Construction Bank (CCB), and YF Capital, a private equity fund backed by Alibaba’s founder Jack Ma.

ChengHome Apartment is created by Chinese hotel management company Huazhu Hotels Group and IDG Capital.

Founded in 2010, Boyu counts former TPG Capital senior executive Mary Ma and Alvin Jiang (also known by his Chinese name Jiang Zhicheng) as its partners.

Last year, there was news about Boyu being in the process of raising a new U.S. dollar-denominated fund of at least $3 billion in committed capital. The fund size, however, has not been finalised yet and could be up to $4 billion, two of the sources had told Reuters.

It is known for a 2012 investment in e-commerce giant Alibaba Group Holding Ltd (BABA.N), and cutting other lucrative deals in China, such as its 2011 purchase of a controlling stake in Sunrise Duty Free, a retailer with outlets at Beijing and Shanghai airports, and the 2015 privatisation of then New York-listed WuXi PharmaTech, China’s largest contract medical researcher.

Legend Capital leads $100m round in Tongcheng Life

Beijing-based venture capital firm Legend Capital has led $100 million funding in Tongcheng Life, a community group-buying platform, incubated by Chinese online travel agent Tongcheng-eLong, China Money Network reported.

The funding round also saw the participation of Bertelsmann Asia Investments (BAI), a China-focused corporate venturing vehicle of German media group Bertelsmann, private equity firm GF Xinde Investment, Sequoia-backed angel fund ZhenFund, and Chinese tech-focused GSR Ventures.

Tongcheng Capital, an angel fund affiliated with Tongcheng-eLong, and Engage Capital, a venture capital firm specialized in early-stage investments, also backed the investment.

Legend Capital, which has total assets under management worth 400 billion yuan, is a venture capital subsidiary of Legend Holdings and targets early-stage and expansion-stage investments.

The venture capital firm has raised about seven US dollar-denominated funds and four RMB funds.

Recently, SL Capital, a semiconductor-focused fund backed by Legend Capital, has led a $100 million Series B round in Black Sesame Technologies (Shanghai) Co., Ltd, an artificial intelligence (AI)-enabled digital imaging technology developer.

The Beijing-headquartered venture capital firm had earlier led a 200 million yuan ($29 million) Series A funding round for Chinese drug developer Sciwind Biosciences, which is focused on treating metabolic disorders.