Last week (November 26 to December 2), a total of 69 investments and acquisitions took place in China, 10 less than the week before.
Software as a service (SaaS) continued to dominate the investments. The 15 investments in SaaS accounted for 22% of the entire funds raised last week. Hardware placed second with 11 investments (See details in Chart-1).
The majority of the funding remained in early stages as usual (14 Angel, 28 Series A, and 11 Series B. Acquisitions dropped to 8 (See details in Chart-2).
Baidu (百度), Alibaba (阿里巴巴), Tencent (腾讯), and JD.com (京东) had a quiet week. Two online startups - Babytree (宝宝树) and Tongcheng-elong (同城艺龙) - filed for Hong Kong IPO. Let’s take a closer look at the significant investments.
On November 26, Tencent-backed online travel firm Tongcheng-elong debuted on the Hong Kong stock exchange at HKD 10.78 (USD 1.38), according to Chinese tech news aggregator itjuzi.com (IT桔子).
The company offered a total of 143.8 million shares. Sponsors of Tongcheng-elong’s listing include Morgan Stanley, JPMorgan, and CMB International Capital.
Tongcheng-elong has a valuation of HKD 22.15 billion (USD 2.8 billion).
On November 27, Alibaba-backed online parenting website Babytree began trading on the Hong Kong stock exchange at HKD 6.91 (USD 0.88) per share, slightly above its IPO price of HKD 6.8 (USD 0.87), reported itjuzi.com.
Babytree is valued at HKD 11.5 billion (USD 1.47 billion). Morgan Stanley, Haitong International Securities Group, and China Merchants Securities are joint sponsors.
Earlier, the startup targeted USD 1 billion by selling 250 million shares, but ended up slashing the size of its IPO by 70% to USD 281 million last week.
On November 27, China’s leading artificial intelligence (AI) chips designer Horizon Robotics (地平线机器人) competed a USD 1 billion Series B round of financing, taking its total valuation to USD 4 billion, reported itjuzi.com.
On November 28, genomics services provider WuXi NextCode (药明明码) announced it has closed a USD 200 million Series C funding round led by the Ireland Strategic Investment Fund (ISIF), which committed USD 70 million.
Other participants include existing shareholders Temasek, Yunfeng Capital (云锋基金), and Sequoia Capital (红杉资本).
The proceeds of the round will be used for propping up the company’s strategy to build a global platform for genomics services, said Rob Brainin, CEO of WuXi NextCode.
On November 29, China’s 24tidy.com (泰笛科技), an O2O in-home services provider, secured over USD 30 million in a Series C+ financing round from the Education Foundation of Xi'an Jiaotong University (西安交大教育基金会) and Lepu Medical Technology (乐普医疗).
The company said the funds will be used to increase its presence in the Chinese laundry market and to gradually integrate more home-based services, according to itjuzi.com.
Following is highlights of the major investments last week.