Tencent and GL Ventures, the venture capital unit of Hillhouse Capital, have jointly led a $92.5-million Series C round for Chinese corporate expense management startup Fenbeitong.
Existing investors including Beijing-based investment company IDG Capital; Silicon Valley-based VC firm Ribbit Capital; Eight Roads, which invests in global technology and healthcare startups; and growth equity firm Glade Brook Capital participated in the round. Investment bank Yuanyi Capital served as the exclusive financial adviser for the deal.
The size of the Series C round surpassed the sum of financing closed in Fenbeitong’s previous four rounds, said the startup in a statement on Tuesday. The new round brought its total funding scale to over 1 billion yuan ($153.9 million).
Beijing-based Fenbeitong helps corporate clients reimburse their employees for expenses incurred in business trips, corporate procurements, insurance & car purchases, and other work-related expenditures through an online expense management platform, a mobile app, and other products.
Established in March 2016, the startup serves enterprises such as hot pot restaurant chain Haidilao, medical aesthetic information provider So-Young, New York-listed apartment rental operator Danke Apartment, and Kingsoft Cloud, the cloud services division of Chinese software firm Kingsoft.
After a virus-induced strong hit on its revenue in the first half of 2020, Fenbeitong’s business quickly came around by the middle of last year as “more enterprises realised the importance of expense management and digital transformation,” said the startup.
During 2020, its gross merchandise volume continued to register a three-fold growth over 2019 to reach 2.5 billion yuan ($384.5 million). The startup claimed the number to be growing three times each year over the past three years.
Upon the completion of the Series C round, Fenbeitong plans to further increase investments in talent recruitment and to double its R&D team within three months.
In March 2020, Fenbeitong announced the completion of $36 million in a Series B+ round led by Ribbit Capital, Eight Roads, and Glade Brook Capital. IDG Capital, CreditEase Fintech Investment Fund (CEFIF), and China Growth Capital also invested in the previous round.