Beijing-headquartered cloud communication service provider Yuntongxun announced on Thursday that it has raised a total of $120 million in a Series F round led by the state-owned Capital Venture Investment Fund — a 200 billion yuan ($30 billion) fund co-launched in 2016 by China Reform Holdings Corporation, Postal Savings Bank of China, China Construction Bank, and Shenzhen Investment Holdings.
The amount is the largest funding in cloud communication industry, claimed the investee in a WeChat statement.
The funding round was joined by Neworiental Corporation’s industry fund, Mirae Asset, Parantoux Capital, and CloudAlpha. Citigroup Global Markets Asia, China Merchants Securities (Hong Kong), and Paradigm Advisors served as joint advisors.
Yuntongxun said it will use the fresh capital to accelerate technology and product innovation.
Managed by Beijing Ronglianyi Telecommunication and Information Technology, the seven-year-old Yuntongxun specialises in developing smart cloud communication products and services for enterprises.
Yuntongxun has expanded to serve industries across finance, education, energy, internet, and automobiles, counting a clutch of Chinese leading groups as top clients such as Tencent, Xiaomi, Baidu, SF Express, JD.COM, State Grid, and Bank of China.
“We are deeply convinced that Yuntongxun has a promising future in the field of education. The combination of sales marketing and corporate service will have a significant contribution to educational groups’ supply chains,” said Zheng Zhao, a managing director at Neworiental industry fund, in the statement.
Sequoia Capital China is a long-term investor in Yuntongxun. Sequoia had first invested in Yuntongxun in 2014, in a $4 million Series A financing round. In 2016, Sequoia, Trustbridge Capital, and other investors had together seeded 70 million yuan ($10.6 million) in its Series C round. And recently, in 2019, Sequoia had participated in its “tens of millions of US dollars” Series D round.
Its early-stage investors include V Fund, Prospect Avenue Capital, Vitalbridge, and Telstra.