Kingsoft Cloud, a China-based cloud storage services provider spun out from office software producer Kingsoft, has raised $300m in a series D round that included its parent company, China Money Network reported today.
Kingsoft provided $150m of the funding while private equity firm Liyue Investment invested $100m and investment group China Minsheng supplied $50m, according to a securities filing.
Founded in 2012, Kingsoft Cloud provides data storage services in China and North America, operating data centres and supplying network infrastructure services to enterprises.
The company has the third largest portion of China’s cloud computing services market, behind businesses run by e-commerce firm Alibaba and internet group Tencent, according to market research firm IDC.
The series D proceeds will be used for research and development, with a view to enhancing Kingsoft Cloud’s artificial intelligence capabilities, and to strengthen its gaming and video-focused offerings as it seeks to enlarge its market share.
The filing revealing the funding also stated that Kingsoft’s share of the company was cut slightly from 52.3% to 51.9% in the round, which valued Kingsoft Cloud at $1.9bn.
The round comes after a $50m series C+ round led by China Merchants Securities in May 2016 that valued the company at $1.1bn, and which itself followed $60m in series C funding from Kingsoft, IDG Capital and an associate of China Asset Management three months earlier.
The first external funding for the spinout came from electronics producer Xiaomi, which paid $1.8m for a 9.9% stake in 2012. Private investor Yuri Milner added $20m in 2013 before Kingsoft Cloud raised $66.6m in a Kingsoft, Xiaomi and IDG Capital-backed series B round in 2015.