Last week (Oct 22 to 28), a total of 100 investments and acquisitions took place in China. Software as a service (SaaS) remained the champion attracting 15% of the entire funds raised during the period. It was followed by the healthcare sector with 14% of overall investment. (See details in Chart-1).
As usual, funding that remained in early stages, particularly Series A with 31 deals. It outnumbered 18 acquisitions during the week. (See details in Chart-2).
Among Chinese giants, Alibaba (阿里巴巴) and JD.com (京东), actively participated in last week’s funding, regardless of Tencent (腾讯)’s silence.
The Passage tracks some of the most important investments.
Alibaba engaged in StoneCo investment
On October 24, Brazilian card processor StoneCo announced in securities filing that Alibaba’s financial affiliate Ant Financial (蚂蚁金服) has committed to invest USD 100 million in the company’s initial public offering (IPO) on Nasdaq. The company plans to raise up to USD 1.1 billion.
Alibaba, teaming up with Didi, invested in Data Enlighten
On October 25, Data Enlighten (明觉科技), a Chinese transportation and space company, has completed a CNY 150 million (USD 21.6 million) series A+ financing round, with investors including Shanghai Yunxin Venture Capital Management (上海云鑫创投), a subsidiary of Ant Financial, Didi Chuxing (滴滴出行), a leading Chinese ride-sharing, artificial intelligence and autonomous technology conglomerate, and venture investment firm YF Capital (云锋基金).
Data Enlighten would use the proceeds to promote the application of data analytics and smart technologies in the automotive aftermarket, including auto insurance, maintenance, and assorted accessories, tech news aggregator 36kr.com (36氪) reported.
Alibaba’s involvement may improve Didi Chuxing’s odds of winning in the battle with Dida Chuxing (滴答出行), its largest rival in ride-sharing sector.
JD.com participated in Huasheng Haoche fundraising
On October 24, Chinese automobile retailer Huasheng Haoche (花生好车) secured USD 210 million in a Series B funding round led by Crescent Point Group, with participation from Goldman Sachs. JD Finance (京东金融), the financial affiliate of the Chinese e-commerce giant JD.com, and venture investment firm Frees Fund (峰瑞资本), which backed the company’s seed and Series A rounds, also participated.
According to the company’s statement, the fresh capital would be used to expand the company’s network of offline stores, improve operational efficiency, and develop new business opportunities.
Last week’s IPO wave: PINTEC and China Great Wall Securities
On October 25, Pintec Technology Holdings Limited (品钛), a leading independent technology platform in China, announced the pricing of its initial public offering of 3,725,000 American depositary shares (ADSs), at USD 11.88 apiece for a total offering size of USD 44.3 million. It has been approved for listing on the Nasdaq and would begin trading under the symbol “PT."
Goldman Sachs (Asia), Deutsche Bank Securities, and Citigroup Global Markets would act as joint bookrunners for the offering. ICBC International Securities Limited as co-manager would offer and sell the ADS outside the United States to non-U.S. persons, according to an article released by Nasdaq.
On October 26, China Great Wall Securities (长城证券), a Chinese company that operates financial research institutes, investment banks, and asset management, offered 310,000,000 A-shares, at the price of CNY 6.31 (USD 0.91) a share for a total offering size of CNY 1.96 billion (USD 282.3 million). The trading would begin on Shenzhen Stock Exchange.