The 10 start-ups that achieved the biggest fundraising in China in 2017
When it comes time to wish each other the New Year all over the world, it’s time to take a look in the retro to take stock of the past year. If Asia is a booming ecosystem, China nevertheless experienced a slight slowdown in the financing of start-ups in 2017. Indeed, Chinese young shoots raised a total of 51.6 billion dollars per year. past, up from $ 53.9 billion in 2016, according to the Tech in Asia. However, the average ticket increased at the same time to reach $ 31.9 million.
- $ 799 million raised in 2017
Launched in 2013 by Alibaba in partnership with 15 Chinese delivery companies, Cainiao is a logistics platform that aims to speed up deliveries of products ordered online. In 2017, Jack Ma’s firm increased its stake in Cainiao to 51% to take control of the logistics company, which claims to handle 57 million deliveries per day. The Chinese e-commerce giant plans to inject 12.75 billion euros into Cainiao over five years. By 2020, the platform intends to ensure 145 million deliveries per day.
- $ 815 million raised in 2017
Last year, the bicycle war raged in China. Ofo and Mobike have indeed increased their investments in 2017 to establish themselves in the Chinese market but also internationally. In January, Mobike first raised $ 215 million before closing a funding round of $ 600 million last June.
Unlike the public bike-sharing services launched by many municipalities around the world, such as the Vélib ‘in Paris, Mobile offers the possibility of picking up and dropping off a company bike anywhere in the city. To do this, the start-up’s mobile application geolocates the available bikes, which can be unlocked by scanning a QR code on each bike.
In 2017, Mobike took off internationally by launching its service in Manchester, which has become the 100th city where the company operates and the first outside of Asia. The Chinese start-up is now operational in 200 cities around the world.
- $ 1 billion raised in 2017
Founded in 2008 by Jia Kang and Xuhao Zhang, Ele.me is a Chinese company specializing in home meal delivery. The latter ensures deliveries via electric scooters, more respectful of the environment, while China is the first polluter on the planet. To date, Ele.me claims 260 million users in 2,000 Chinese cities, who order meals from 1.3 million restaurants.
To develop, the Chinese company can count on the faithful and regular support of Alibaba. After injecting $ 1.25 billion into Ele.me in April 2016, the e-commerce juggernaut once again injected $ 1 billion into the home meal delivery service in June 2017.
- $ 1 billion raised in 2017
In China, Bytedance shines with its information curator Toutiao, which claims 120 million users. The Chinese press aggregator gathers information and videos from hundreds of media and uses artificial intelligence to build a tailor-made information flow for its users. In the space of five years, it has grown into one of the largest information services in the world. Every day, Toutiao readers spend an average of 74 minutes on the app, which is double the time spent on Snapchat.
In November 2017, Bytedance got noticed by getting their hands on the Musical.ly application. The latter, which claims more than 200 million users worldwide, allows you to make short music videos and share them on the application and other social networks (Facebook, Twitter, Instagram, etc.). Currently valued at $ 20 billion, Bytedance also owns Flipagram, TopBuzz and Tik Tok.
- $ 1.1 billion raised in 2017
Koubei, another Alibaba-funded company, raised $ 1.1 billion last year. Founded in 2004, Koubei is a platform whose objective is to connect physical merchants with online consumers. Initially positioned in food and beverage products, the service has gradually opened up to a larger set of merchants in order to broaden the range of offers available. Koubei notably allows merchants to offer mobile payment or to launch promotional campaigns.
By focusing on the expansion of its local services platform, Daniel Zhang, CEO of Alibaba, seeks to develop growth drivers outside e-commerce to ensure the group’s sustainability. The Chinese giant must face competition from Tencent, its great rival in the O2O (online-to-offline) niche. The latter publishes the instant messaging application WeChat, which has 963 million monthly active users.
- $ 1.2 billion raised in 2017
Like Mobike, Ofo spared no efforts to expand in 2017. The Chinese bike-sharing service started the year with a bang by raising $ 450 million before doing it again last summer with a fundraiser. of $ 700 million. In both operations, Alibaba is once again among the investors.
Founded in 2014 by Xue Dong, Zhang Siding and Dai Wei, Ofo operates in 200 cities in 20 countries (China, Singapore, United States, United Kingdom…). The company claims more than 10 million bikes in circulation around the world. In 2017, Ofo notably launched its service in London, Milan, Vienna, Prague and Paris.
- 1.7 billion dollars raised in 2017
The young Chinese manufacturer NIO has the wind in its sails. After making a name for itself with the EP9, an electric supercar that had distinguished itself in Formula E, the only motor racing championship using vehicles powered by an electric motor, NIO has just presented the ES8, its first electric SUV to destination of the general public.
With this model, NIO intends to seduce the Chinese middle class. The ES8 also presents itself as the Chinese rival of the Tesla Model X. Admittedly, NIO’s electric SUV is less efficient than the model of the firm of Elon Musk, but it is however much cheaper.
In 2018, the Chinese manufacturer should continue to grow. In this sense, he can certainly count on the support of the giants Tencent and Baidu, who have already invested in the company.
- 2 billion dollars raised in 2017
In 2017, neobanks have continued to grow all over the world. N26, Revolut, Orange Bank… The list just keeps getting longer. China has not escaped the phenomenon. And the local nugget is called Daikuan. However, Chinese FinTech does not offer a full range of financial services, but only focuses on loans for used car buyers. In 2017, Daikuan raised the trifle of $ 2 billion.
- 4 billion dollars raised in 2017
In October, Chinese giant Meituan-Dianping, which is developing an application for group purchases and local services, struck hard by closing a $ 4 billion fundraising round led by Tencent. The Chinese group was born out of the merger in October 2015 of Meituan and Dianping, two rival platforms that develop online advice and address recommendation services as well as reduced-price offers at physical merchants.
Positioned in the O2O (online-to-offline) niche, Meituan-Dianping claims 280 million users. In particular, the group offers reduced-price coupons for restaurant reservations, home meal deliveries and movie tickets. In its business segment, Meituan-Dianping faces Alibaba, with its Koubei platform, and Tencent, with its WeChat multi-service messaging application.
1. Didi Chuxing
- $ 9.5 billion raised in 2017
Untouchable, Didi Chuxing is by far the company that managed to raise the most money in China last year. In two rounds, the first for $ 5.5 billion in April and the second for $ 4 billion in December, the Chinese platform has raised no less than $ 9.5 billion in 2017. To date, it claims 450 million users and 21 million drivers.
After stepping up his efforts in artificial intelligence, with the opening of a research laboratory in the United States, based in Mountain View, Didi Chuxing could finally choose to take the plunge in 2018 to expand internationally. Brazil, Mexico and Taiwan are the countries approached to start this global expansion. After pushing Uber to withdraw from China in the summer of 2016, the Chinese company now wants to compete with the American company around the world. New cold sweats to come for Dara Khosrowshahi…