Chinese SaaS-enabled home decoration and design platform Kujiale has closed a Series D+ round of financing led by Hillhouse Capital Group, paving its entry into the unicorn club at a valuation of over $1 billion, DealStreetAsia has learnt.
The company’s existing investors, Chinese venture capital fund Shunwei Capital and global venture capital firm GGV Capital, also poured money into the new round.
It is understood that Kujiale raised around $100 million in the latest round.
Earlier this year, the company started preparations for an initial public offering (IPO), Chen Hang, co-founder and CEO of Kujiale, told DealStreetAsia. The company is yet to decide the destination and timeframe of the listing but Chen said that Kujiale might go public within two years.
The newly-minted unicorn was founded in November 2011 and is headquartered in eastern China’s Hangzhou city, home to some of the largest internet companies in China, including Alibaba and NetEase. The company operates as an intelligent home design and decoration software as a service (SaaS) platform.
The company provides corporate clients, such as home decoration companies and furniture sales firms, with solutions and services covering design, marketing, production, construction and supply chain management. As one of its major offerings, the company allows clients to view their designs in a panoramic virtual reality (VR)-enabled effect and generate 3D renderings in a matter of seconds.
“The integration between the digital economy and home decoration keeps accelerating. It is inevitable for home decoration enterprises to realize optimized resource allocation and continuous improvement of efficiency by leveraging technologies to collect and apply data,” said Huang Xiaohuang, founder and chairman of Kujiale.
“Whoever comes first to embrace digital technologies will take the lead in the global digital economy,” Huang added.
China’s residential decoration projects have booked a total of 2.04 trillion yuan ($289 billion) in annual output in 2018, up 6.3 per cent compared to 2016, according to China Building Decoration Association(CBDA).
Due to rising middle-class homebuyers and massive venture capital injection, business models related to “customized decoration” are becoming a hit in the market. The renovation and decoration output of second-hand and rental apartments, in particular, has grown 15 per cent year-on-year in 2018, accounting for 34% of the total residential decoration output, according to CBDA.
Kujiale claims to have over 25 million registered users, including 8 million interior designers. Besides its focus on the Chinese market, Kujiale also has business operations in North America and Southeast Asia.
Upon the completion of the new round, Kujiale will increase investment in the research and development of software products, and enhance its capabilities in providing digital solutions to corporate clients along the upstream and downstream industry chain.
The company has so far raised six funding rounds including the new investment. The company closed a $100 million Series D round led by Shunwei Capital in March 2018.
The previous round, which valued the firm at $600 million, also saw the participation of GGV Capital, Boston-born IDG Capital, Shanghai-based venture capital firm Yunqi Capital, and Pavilion Capital, managed by Singaporean investment firm Temasek Holdings, among others.