Chinese operating system (OS) startup Uniontech Software Technology has garnered 1.1 billion yuan ($168.2 million) in a Series A round of funding led by state-owned investment firm Beijing E-Town International Investment & Development.
In a filing with the Shenzhen Stock Exchange (SZSE) late Tuesday, ArcherMind Technology, a shareholder, revealed that Uniontech raised the new investment from a consortium of 18 institutional investors at a pre-money valuation of 4.8 billion yuan ($734.4 million).
Led by E-Town, the consortium includes Chinese state-owned Optics Valley Financial Holding Group’s equity investment platform; government-backed Shenzhen Capital Group; Shanghai Guohe Capital, a private equity fund manager backed by state-owned Shanghai International Group; and Beijing-based venture capital firm Gaorong Capital.
ArcherMind, a Chinese developer of technologies and solutions in the fields of AI, Internet-of-Things (IoT) and mobile Internet, will remain as Uniontech’s biggest shareholder upon the completion of the transaction. But its stake in the firm will reduce from 44.4 per cent to about 32.5 per cent, according to the filing.
The Beijing-based firm partners with global software companies and China-based chip makers including Loongson Technology, FeiTeng, ShenWei, and Zhaoxin.
The filing also disclosed Uniontech’s unaudited financial results for the first nine months of 2020, during which the firm booked 144.9 million yuan ($22.2 million) in revenue and a loss of nearly 110.1 million yuan ($16.8 million). It did not generate any revenue and had a total loss of 490,000 yuan ($74,967.1) in 2019.
The company’s chairman Wang Jiping said at a company event on Wednesday that Uniontech plans to move towards an initial public offering (IPO) on China’s Nasdaq-style STAR Market in the next few years, local publication PEdaily reported.