Home-rental start-up Xiaozhu.com is now worth more than US$300 million after the latest round of financing.
The Airbnb-inspired company recently tapped four private equity firms for US$60 million, according to the Wall Street Journal.
These were Morningside Venture Capital, Citic Capital Venture Partners, Joy Capital and Magic Stone Alternative.
The three-year-old company operates a rental portfolio 30,000 homes in more than 200 Chinese cities and has offices in 20 of them.
A glut of vacant homes is fueling China’s “sharing” economy, with homeowners signing up to rent them out for short-term stays.
Xiaozhu.com is collaborating with Ant Financial Services Group, an affiliate of Alibaba Group Holding Ltd., to build data on individual credit reports in the short-term rentals sector.
China’s sharing economy has taken off with the launch of homegrown apps that help individuals exchange goods and services.
Didi Kuaidi Joint Co., China’s Uber rival, and restaurant-review and group buying services Dianping Holdings Ltd., are getting significant investor interest.
Didi Kuaidi is currently targeting raising US$2 billion in funding, while Dianping raised US$850 million in April.
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