Weimob Inc, a Chinese cloud-based commerce and marketing solutions provider, has joined hands with state-backed innovation centre SHIVC to set up 1 billion yuan ($142 million) industrial fund, according to an announcement.
As many as four subsidiaries of Weimob contributed a total of 997 million yuan ($141 million) to the fund as its limited partner, while SHIVC has contributed another 3.3 million yuan ($40 thousand) as its general partner. Another subsidiary of Weimob is said to have pumped in the remaining amount in the capacity of a general partner.
Established in 2013, Shanghai-headquartered Weimob facilitates digital transformation for small and medium businesses (SMBs) by the cloud computing system. The company is listed on The Stock Exchange of Hong Kong (SEHK). Earlier this year, in July, Weimob raised over 1 billion yuan ($142 million) from Singapore sovereign wealth fund GIC, and BlackRock.
Weimob invests in companies that focus on cloud computing units, artificial intelligence (AI) and big data analytics. Strategic partnerships with other firms help Weimob advance its own cloud computing service, besides boosting its own business.
Through the industrial fund, both Weimob and SHIVC aim to provide qualitative resources to SaaS startups in a bid to foster technology.
Set up by the Shanghai government, SHIVC was created as an innovation centre to take the industry forward by venturing in the new economy following the policy of Widespread Entrepreneurship and Innovation by the Chinese government. Currently, SHIVC’s assets under management stand at 10 billion yuan ($1 billion).
During the Summer Davos Forum in September 2014, China’s Premier Keqiang Li had said entrepreneurial activities should be encouraged to unleash the wave of innovation. Subsequently, in the Central Economic Meeting in December, Chinese President Jinping Xi had called for efforts to initiate a policy to help entrepreneurship and innovation to grow in the country.