IDG Capital Partners, the corporate venturing unit of media technology and research firm IDG, has invested a reported $4m into China-based WeiPass, a company that has developed what is called an ‘appcessory’ for small business customer relationship management.
WeiPass is a combination of a hand-held gadget and software application platform that offers participating retailers the ability to scan QR codes from the WeiPass app in a user’ smartphone. Merchants are attracted to the app because it means they can easily register a customer or redeem e-coupons stored in the app. The hardware and software are offered free of charge, however the sales model is based on revenues generated from merchants who will be charged with transaction-based fees.
The company has set up a partnership with Sina’s payments service and Gaopeng, Groupon’s operations in China. Gaopeng will have its 13,000 merchant partners, including 5,000 restaurants, in first-tier cities adopt the WeiPass app and gadget, according to a news report by IT news site, technode.com.
The company has recently launched a WeChat-based service with a WeChat API. This new service means that users no longer have to download the app, but can receive e-coupons or other e-deals within WeChat. WeiPass, at the same time, is aiming for users to then share deals to their WeChat friends.
WeiPass founder and serial entrepreneur Li Yan is already familiar with IDG Capital Partners having founded Emay Softcom, a mobile commerce solution provider, backed by IDG Capital. Capital. Li Yan resigned as CEO of Emay Softcom after it introduced a controlling shareholder in 2012, according to technode.