‘Startup Funding Roundup’, the weekly report prepared by The Passage team provides detailed information about venture capital financing, fundraising, investments and acquisitions in China.
Software as a service (SaaS), one of the most favourite sectors of Chinese investors, continued to reign supreme in last week’s investments (September 17 to 23). Of the 105 investments and acquisitions that took place, the 28 investments in SaaS accounted for 21% of the entire funds raised over the week (Details in the chart below).
The majority of this week’s funding remained in early stages - 29 Series A, 14 Angel, and 2 Seed. It was noteworthy that acquisitions doubled to 25, compared to the figure between September 10 and 16.
Chinese giants, including Alibaba (阿里巴巴), Tencent (腾讯) and Meituan-Dianping (美团点评), participated in last week’s funding with different focuses. Let’s take a look at those significant rounds.
Alibaba eyed cloud-based note application Anxinjijiaban
On September 17, Anxinjijiaban (安心记加班), a cloud-based note app that provides overtime work recording assistant, raised over CNY 100 million (USD 14.6 million) in a Series B financing round from Alibaba’s financial unit Ant Financial (蚂蚁金服) and Shunwei Capital (顺为资本).
The platform has not disclosed how it would use the proceeds.
Tencent invests in B2B e-commerce startup Yijiupi
On September 20, Yijiupi (易酒批), a Chinese B2B online liquor trading venture, secured a USD 200 million Series D round jointly led by Tencent and Meituan-Dianping. Other investors include China Everbright Limited (光大控股) and Source Code Capital (源码资本).
After the round Yijiupi’s valuation has hit USD 1.1 billion, bringing it a member of the unicorn club.
The firm announced that the fresh funds would be used for improving its warehouse system, diversifying platform categories, as well as supporting its expansion plans.
Meituan-Dianping’s trading debut in Hong Kong
China’s leading food-delivery company Meituan-Dianping set a price of HKD 69 (USD 8.8) per share for its Hong Kong initial public offering on September 20. It opened the day at HKD 72.9 (USD 9.33), up 5.65% from the IPO price.
After the first day’s trading, the company’s market cap reached HKD 400 billion (USD 51 billion).
Following is the detailed investments in last week.
Comparison in brief
Compared to the figure of 85 between September 10 and 16, the total number of investments last week increased by 23.5% to 105. This hinted at a thriving investment market in China.
SaaS successfully defended its predominance in the two time periods and remained the most eye-catching sector for Chinese investors.
For the outbound, the Chinese government has tightened reins on US assets acquisitions from June this year, as a result of the increased US-China trade tensions. According to CNBC’s research data, Chinese ventures have spent just USD 1.6 billion on U.S. assets by the end of June, down almost 80% from the same period in the previous year, while the amount China spent on European assets has increased 39% from last year to USD 45.1 billion.