China Digest: GGV leads $14m in Rongyisuan; Hugo Biotech raises funding

A black Android smartphone near ballpoint pen, tax withholding certificate on top of white folder. Source: Kelly Sikkema/Unsplash

GGV Capital has led a Series A+ round of nearly 100 million yuan ($14 million) in Chinese tax and accounting startup Rongyisuan, while Beijing-based Hugo Biotech has also raised almost 100 million yuan ($14 million) in its first funding round.

GGV leads funding in accounting solutions provider Rongyisuan

Rongyisuan, a Chinese startup that provides customized tax and accounting solutions for corporate customers, has raised nearly 100 million yuan ($14 million) in a Series A+ round of financing led by global venture capital firm GGV Capital.

The new investment, which took the total capital raised by the startup to almost 200 million yuan ($28 million), came after Rongyisuan closed 100 million yuan in a Series A round led by Sequoia Capital China in August 2019.

Beijing-based Rongyisuan primarily delivers AI and big data-enabled intelligent tax and accounting services to small and medium-sized enterprises (SMEs) in the e-commerce field in China.

“GGV Capital has been tracking the development of the corporate service space. Fiscal and taxation services represent a huge market of at least one hundred billion yuan,” said Eric Xu Bingdong, managing partner of GGV Capital, in a statement.

“After the new funding round, we believe that the company [Rongyisuan] can further lift its online and offline operation capabilities and introduce new value-added offerings to comprehensively enhance the industry efficiency,” said Xu.

Proceeds will be used to expand cooperation with various online platforms to acquire new clients and to increase investment in R&D to improve offline services, as well as products catered to terminal users.

The startup received tens of millions of yuan in an angel round led by Shanghai-listed software company Sunyard and Chinese private equity firm Daocin Capital in December 2018, shows the company website.

Hugo Biotech raises nearly $14m from Northern Light

Beijing-based next-generation sequencing (NGS) startup Hugo Biotech has raised nearly 100 million yuan ($14 million) in its first funding round from investors including China’s Northern Light Venture Capital.

Northern Light made the first tranche of the investment in August 2019, followed by subsequent capital injections from industry funds and financial institutions, said Northern Light in a WeChat post on Tuesday. The company did not name other investors in the round.

Established in 2017, Hugo Biotech has conducted the sequencing of nearly 20,000 clinical samples for over 300 first-class hospitals in China. Apart from its headquarters in Beijing, the company also built a sequencing centre of almost 2,000 square metres in Xi’an, which it claimed to be the largest one in northwestern China.

Proceeds will be used for talent recruitment, education and expansion of the customer base, registration of diagnostic kits, as well as the research and development of new products.

Northern Light, founded in 2005, now manages over 30 billion yuan ($4.27 billion) across five dollar funds and five RMB-denominated funds. The firm has backed more than 300 companies in the fields of TMT, advanced technology and healthcare.

Some of its most prominent portfolio companies include Shenzhen-based genome sequencing giant BGI Group, Chinese online education platform VIPKid, and Meituan, which was merged with Dianping in 2015 to create China’s local life service giant Meituan-Dianping.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.