XiaoETong, a Chinese business services platform backed by tech giant Tencent, has secured $120 million in a Series D round of financing led by the asset management firm IDG Capital, as per a company statement on Tuesday.
The funding round also saw participation from investors including private equity firm Hillhouse Capital’s venture unit GL Ventures, Qiming Venture Partners, and GGV Capital.
China Renaissance, the investment bank that recently facilitated the transactions for Yaoshibang, HiFiBiO Therapeutics, and Dingdang Health, served as the exclusive financial advisor for the deal.
XiaoETong will allocate the fresh proceeds for R&D of products and technology, operations, and service supports, it said in the statement.
The Shenzhen-based XiaoETong creates software-as-a-service (SaaS) applications that deliver innovative content and other digital solutions. With a focus on Tencent’s WeChat platform, it helps clients maximise digital operations such as brand marketing, sales network, and online community support.
As of June 10 this year, XiaoETong has served over 1.6 million registered customers including Tencent University, travel services agency Caissa Touristic, New Oriental Education, and China Asset Management.
XiaoETong had secured ‘tens of millions of US dollars’ in a Series C round of financing from Tencent in October 2020. In 2019, it had also garnered a 100 million yuan ($16 million) Series B round from New York-listed Chinese edtech player TAL Education Group.