Investors continue to be active in the rental services in China with tens of millions of US dollars in new funding rounds. IDG Capital and Huazhu Hotels Group invested in apartment rental startup Chengjia Apartment’s $50 million pre-series A round. Shouqi Limousine & Chauffeur, a subsidiary of state-owned automobile and transportation firm Shouqi Group, has also raised $88 million with company valuation of $750 million.
IDG Capital leads $50m round in apartment rental firm Chengjia
IDG Capital and its portfolio company Huazhu Hotels Group have led a $50 million pre-series A round in accommodation rental startup Chengjia Apartment, China Money Network reported.
Chengjia Apartment was founded in 2015 by IDG Capital and Huazhu, which was formerly known as China Lodging Group, to provide apartments with flexible rental periods at different price levels. Its services range from budget rooms for young people to higher-end accommodations with home innovations, as well as standard apartments for short-term sharing.
The company is reportedly working with 50 property management companies in Chinese tier-one cities, providing over 5,000 apartments, 95 per cent of which are long-term rentals.
The new investment will be used to double its offerings to 10,000 apartments through partnership expansion by the end of this year. In addition, the company will also develop its online information platform and enhance its services.
“The apartment rental industry will definitely experience significant development and at the core of that industry is Chengjia’s operating ability and property management skills. Chengjia’s team have experience in both managing economy hotels and turning traditional hotels into apartments for rental,” Jeacy Yan, a partner at IDG Capital, reportedly said.
In March this year, China Oceanwide Holdings Group closed its acquisition of International Data Group. As the controlling shareholder with a 90 per cent stake in IDG, the Chinese conglomerate also takes over its venture capital business.
An AVCJ report has recently said that the general partner of IDG Capital in China and LPs in at least seven funds in India and Vietnam had sold their stakes for nearly $600 million.
Shouqi Limousine & Chauffeur raises $88m, valued at $750m
Two-year-old ride-hailing company Shouqi Limousine & Chauffeur has secured a RMB600 million ($88 million) series B funding from an unnamed investor, local media reported.
The investment values the car-booking startup at some $750 million with the investor taking no more than 11.76 per cent of the company.
Meanwhile, China Jianyin Investment – the backer of Shouqi Limousine & Chauffeur’s $34 million series A round in 2015 – will hold 13.9 per cent upon closing the transaction, and Beijing-based Harvest Capital Management will own 8.49 per cent.
Shouqi Limousine & Chauffeur was founded in September 2015 by state-owned transportation firm Shouqi Group and taxi operator Beijing Xianglong Taxi Co. The launch was said to challenge rivals Uber and Didi Kuaidi (now Didi Chuxing), which by then invested $100 million in American peer Lyft.
The Chinese ride-booking app claims it has presence in 47 cities across China and 24 Internet car-hailing licenses. Although its annual revenue skyrocketed 4,700 per cent last year to RMB378 million ($55 million), its net loss still jumped 1,400 per cent to about $129 million, according to local media.
Shouqi Group, the parent firm, has two other ventures in the car rental industry. Its Shouqi Car Rental subsidiary has bagged a total of $579.4 million in equity funding, with the latest round led by Taiping Assets Management.
The other unit, Shouqi Zhixing has recently raised RMB55 million ($8 million) in its series A round.