China’s largest decentralized apartment rental service provider Ziroom has completed the Series A-round financing of Rmb4 billion ($622 million), led by an affiliate of Warburg Pincus, Sequoia Capital, and Tencent.
The funding round was also participated by China Renaissance Principal Investment, Sunac Capital, GA Capital, H Capital, Source Code Capital, Haixia Asset and New Hope.
Ziroom was founded in 2011 by a team of senior professionals from HomeLink, the largest real estate agency in China, and was spun-off from the group in 2016.
Through innovative online and offline platform, Ziroom leases and renovates apartments from individual owners to provide higher-quality apartments and services to renters.
Ziroom currently manages around 500,000 rooms entrusted by 200,000 apartment owners, and has served a total of over 1.2 million renters since inception. It has presence in nine cities in China including Beijing, Shanghai, Shenzhen, Hangzhou, Nanjing, Chengdu, Tianjin, Guangzhou and Wuhan.
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Ziroom CEO Xiong Lin said, the proceeds will be used to expand the company’s existing businesses in Beijing, Shanghai, and Shenzhen, as well as adding new operations in cities such as Hangzhou, Wuhan, and Guangzhou.
“We have embarked a challenging but righteous cause, which is full of fun and with great potential. Our team’s average age is 25.3 years old and we welcome more talents specializing in product management, services and IT to join us. In 2018, we will aim to be the preferred choice by owners and clients across the country,” Xiong said.
Furthermore, the Company looks to build Ziroom into a vibrant youth community, in which Ziroom renters are not only roommates but also friends with shared values. So far, Ziroom has organized nearly 1,000 community events for its renters since inception.
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This is the third investment made by Warburg Pincus in the institutional apartment rental sector in China. In 2012, Warburg Pincus invested in Mofang, China’s first and leading centralized institutional apartment developer and operator, serving young white collars in first and second-tier cities.
In 2015, Warburg Pincus co-founded Nova to focus on the acquisition of aged and distressed properties in urban infill locations that are suitable for conversion into modern residential rental apartments with extensive amenities such as shared offices. [EventsNewsAsia.com]