Popular note-taking app Evernote is spinning off its China-based service, Yinxiang Biji, into an independent entity, with plans to take the unit public at some point in future, according to TechCrunch.
Evernote is allowing the Chinese management team to take day-to-day control with full autonomy over the business and services, the tech news website said in a report.
In addition, the US-based firm is going to become a minority shareholder as the Chinese unit has raised an undisclosed Series A round from Sequoia CBC Cross-border Digital Industry Fund.
After the new financing, the ownership of the business is split roughly equally between Evernote, the Chinese investors and Yinxiang Biji’s management team, the report said, citing Raymond Tang, the CEO of Yinxiang Biji.
Yinxiang Biji has raised “several hundred million” yuan, Tang was quoted as saying, without going into details.
After the spin-off, the China-based unit is expected to build out app features that are more directly tailored to the Chinese market.
TechCrunch notes that the move which makes Yinxiang Biji majority Chinese owned paves way for a potential initial public offering, which company officials admitted is part of the plan.
Tang indicated that the firm might opt for a listing in Shanghai or Shenzhen, though there is no timetable at this point.
Evernote introduced its Yinxiang Biji service to the Chinese market in May 2012, and managed to garner over 4 million users across the country just one year after its debut, mainland media reported previously.
According to Tang, the China entity now has over 20 million registered users who have created over one billion notes. The business is said to have grown at 60-percent rate annually.
Ten-year-old Evernote, one of the world’s largest repository of unstructured data, claims to serve 200 million users around the world, and China has undoubtedly been a major market since it entered the country.
Evernote’s chief marketing officer Andrew Malcolm told TechCrunch that the China entity accounts for some 10 percent of Evernote’s global revenue.
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