Tencent-backed IoT startup G7 raises $320m round led by HOPU Investments

G7 founder and CEO Xuehun Zhai (PRNewsfoto/G7)

Tencent-backed fleet management startup G7 has raised $320 million in a financing round led by China-focused private equity firm HOPU Investments.

The round was joined by new investors China Broadband Capital (CBC), Intelligent Fund of Funds, Mount Morning Capital, Total Energy Ventures, and TH Capital. Return backers GLP, Bank of China Investment and Tencent also participated in the latest round.

G7 claimed the financing marked the largest fundraising by an internet of things (IoT) startup globally and has made it one of the most valuable IoT firms in the world. The fleet manager has now raised a total of $500 million in just over a year from investors including Temasek, Eastern Bell Venture Capital, Tencent and GLP.

G7 offers services such as vehicle tracking and monitoring, fleet analytics, fuel management, payments, financing, and intelligent-equipment-as-service. To date, the company claims to have catered to 60,000 customers and 800,000 commercial vehicles worldwide.

“Technology is having a profound impact on the industry. Based on IoT, big data, and artificial intelligence, the smart fleet model is fundamentally changing the way fleet operates and is forming a new generation of logistics infrastructure with much improved efficiency,” said G7 founder and CEO Xuehun Zhai in a statement.

According to US-based Grand View Research, the global IoT fleet management market is expected to reach $16.86 billion by 2025.

“Technological innovation is the leading force in driving the industry’s transformation. G7’s unique platform capabilities and huge user base allow the industry to benefit from the technological innovation, which is of great business and social value,” said HOPU Investments partner Simon Chen. 

HOPU had in early 2018 made the first close of its US dollar-denominated fund at $2 billion.

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