Xiaozhu, a China-based online accommodation marketplace backed by media group Bertelsmann, secured $120m today in a funding round led by private equity firm Yunfeng Capital.
Private equity firm Capital Today and venture capital firms Joy Capital and Morningside Ventures also took part in the round, which was closed at a $1bn+ valuation and which increased the company’s overall funding to more than $260m since it was founded in 2012.
Xiaozhu’s core business is an Airbnb-like short-term accommodation marketplace that now covers 400 cities in China and internationally, and it has expanded its offering to incorporate adjacent services such as cleaning and photography.
The funding will be used to enhance the platform’s security features in order to ensure users feel comfortable listing their rooms or homes on the service.
Bertelsmann’s local corporate venturing subsidiary, Bertelsmann Asia Investments, was among the investors that provided $65m in series C+ and D funding for Xiaozhu, through deals that closed in November 2016.
Capital Today, Joy Capital and Morningside Ventures were also part of the consortium that supplied the $65m, as was Heyu Capital, a branch of hotel operator Heyu Leisure Holidays. All four had invested in the $60m round Xiaozhu closed in mid-2015.
Legend Capital, the VC firm formed by conglomerate Legend Holdings, led a $15m series B round for the company in 2014. Xiaozhu had received an undisclosed amount of funding from Morningside as part of a 2012 series A round.