China: Media startup Er Geng raises $21m; Travel management platform Meiya bags $17m

The latest in the deals space in China has seen video content platform Er Geng and online travel agency Meiya raising funds from from venture capital firms. The investors include Vision Plus Capital, Zhen Fund, Fortune Capital and the nation’s development fund for small businesses.

Er Geng lands $21m investment led by Vision Plus Capital

Hangzhou-based venture capital firm Vision Plus Capital has led a RMB150 million ($21 million) series B funding round in a Chinese media startup Er Geng.

According to a report in China Money Network, Houde Venture Capital, and existing investors Stone Venture Capital, Zhen Fund and Oriental Fortune Capital also participated in this funding round.

Zhen Fund and Stone Venture Capital had earlier invested RMB50 million ($7 million) in Er Geng in March 2016.

Proceeds from the series B financing will be used to train talents for the film industry, establish a content intellectual property database, and improve its marketing model, the company reportedly said.

Er Geng also plans to expand its business in 30 cities across 20 provinces in China.

The two-year-old startup, which provides lifestyle videos via various platforms including WeChat, Youku, and Weibo, claims to have over 20 million fans with monthly views of over one billion, and over six billion views in aggregate, China Money Network said.

Meanwhile, Vision Plus Capital was reported to manage RMB2 billion ($290 million) assets.

Fortune Capital, National SMEs Development Fund funnels $17m in OTA platform

Fortune Capital, one of China’s earliest venture capital firm, and the country’s National Small and Medium-size Enterprises (SMEs) Development Fund have invested RMB120 million ($17 million) in OTA platform Meiya, according to a report in China Money Network.

Based in Guangzhou, Meiya has to to date expanded across China with offices in a number of cities including Beijing, Shanghai and Shenzhen.

It provides flight tickets, business travel management, and tourism services, having served as agent for many international airlines’ tour operations, including Emirates Holidays, United Airline Holidays and Singapore Airlines Holidays.

The new capital pump will help the company develop its technology and brand, as well as grow its market share, according to the newswire.

Yi Wei, a former executive at International, joined Meiya as chief executive earlier this month.

“In 2016, only 7 per cent Chinese companies use business travel management system, which is much lower than 40 per cent in western countries. With Meiya’s resource and featured products, business travel management sector will become the main revenue resource for Meiya,” the China Money Network report cited Jia Wei, a partner at the National SMEs Development Fund.

The company has also claimed that it is well positioned to tap into the RMB200 billion business travel management market in China, as the industry remains segmented, creating opportunities for consolidation and further expansion.

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