DCM Ventures has led a $10-million Series A round in Duocaitou, a crowdfunding platform for accommodation industry, according to a company announcement.
Shunwei Capital, which is co-founded by Xiaomi’s chief executive Lei Jun, also joined this round.
Duocaitou, launched in 2014, is a platform for the owners of hotels, Bed & Breakfast and co-working spaces to connect and raise fund from investors. Individual investors receive premiums or free rooms in return.
Li Rui, a partner at Shunwei Capital, said that China’s leisure industry is fiercely competitive and Duocaitou is an alternative fundraising platform that gives marketing opportunities to operators.
The startup said it will use the funding from the new round to expand into other types of properties including apartments, co-working spaces and commercial real estate projects as well as co-ordinate with luxury hotels.
To date, it claims total fundraising on the platform has reached RMB4.6 billion ($670 million) from more than 10,000 individual investors.
Duacaitou completed its pre-Series A financing round in 2016, receiving funds from Share Capital, Innovation Angel Fund, and Shunwei. Shunwei also put in undisclosed angel funding in 2015.