Chinese corporate expense management startup Fenbeitong has secured $36 million in a Series B+ round of financing led by Silicon Valley-based fintech venture firm Ribbit Capital, and Paul Hudson’s growth equity firm Glade Brook Capital.
Eight Roads Ventures, the investment platform of Fidelity International Limited, was the third lead investor of the new round, joined by an array of domestic investment companies including fintech-focused BitRock Capital, China Growth Capital, Beijing-based IDG Capital, and CreditEase FinTech Investment Fund, an RMB-denominated fund launched by Chinese fintech conglomerate CreditEase, according to a statement on Tuesday.
Beijing-based Fenbeitong helps enterprises reimburse employees for expenses incurred in business trips, corporate procurements, insurance & car purchases, and other work-related expenditures through an online expense management platform, a mobile app and other products.
Established in 2016, Fenbeitong claims to have served over 1,000 medium and large-sized domestic enterprises such as hot pot restaurant chain Haidilao, medical aesthetic information provider So-Young, New York-listed apartment rental operator Danke Apartment, and Kingsoft Cloud, the cloud services division of Chinese software firm Kingsoft.
“We have seen unicorns like Brex, Divvy, and TripActions emerging in the space of corporate expense management in the United States. They have obtained wide acknowledgment from high-growth enterprises by helping them integrate the expense management of credit card payments and business travel expenditures,” said the company founder and CEO Lan Xi, in the statement. “The same market trend is happening in China.”
“Fenbeitong has realized a threefold growth in annual revenue over the past two years, and we expect to retain this growth pace in 2020,” said Lan.
After the completion of the Series B+ round, the company will increase investments in product research and development, upgrade current offerings, and expand into most first and second-tier cities in China.
Previously, Fenbeitong raised 85 million yuan ($12 million) in a Series B round led by Chinese venture capital firm Bojiang Capital in September 2018.
In September 2017, the company also completed a Series A+ round at 40 million yuan ($6 million) led by CreditEase FinTech Investment Fund and IDG Capital, with participation from China Growth Capital. It closed 30 million yuan ($4 million) in a Series A round led by IDG Capital in January 2016, shows the company website.
CHINA DEAL MONITOR
DealStreetAsia has also put together a table listing out all prominent venture capital transactions in the Greater China region from March 10, 2020.