Qingzhu, a budget hotel spinoff from China-based local services platform Meituan Dianping, has raised tens of millions of dollars in series B financing, DealStreetAsia reported today, citing a company statement.
Investment firm Sofina Group and venture capital firm GGV Capital co-led the round, which was also backed by fellow VC firms Sequoia Capital China and XVC.
Formed in January 2019 under a management company known as Beijing Meizhu Bicheng Technology Company, Qingzhu runs an online platform that allows users to book rooms at partner hotels that operate under the Qingzhu brand.
The approach is similar to that pioneered by India-based Oyo, which was valued at $10bn as of November 2019. Qingzhu is currently working with some 30,000 franchisee hotels across 180 Chinese cities.
The series B proceeds will support business development in addition to the formation of more partnerships with hotel owners.
Qingzhu had previously raised an eight-figure dollar total across three rounds in the first half of 2019, the funding being supplied by Sequoia Capital China, XVC and VC firm Source Code Capital.
