This new round of funding could see Tujia dominating China’s already crowded short-term rental market.
Chinese home rental service Tujia has announced $300 million in series D financing. This latest round values the company at more than $1 billion, adding another company to China’s growing list of billion dollar tech startups. All-Stars Investment led this round with participation from Ascott and existing investors.
The financing will push Tujia’s total funding to over $464 million. The site raised a $100 million Series C last year after receiving a combined $64 million in Series A and Series B from GGV Capital, Lightspeed Venture Partners, CDH Ventures, Qiming Venture Partners, Ctrip and HomeAway.
The funding will be used to connect the companies online and offline resources, improve user experience and expand brand promotion, according to Luo Jun, CEO of the company.
The startup, previously focused on a B2C model, has since launched a C2C platform to enrich its business offering and has announced plans to build overseas headquarters to target the cross-border travel market. The startup is also initiating a campaign to connect offline home rental partners with the support of Ascott, operators of white-collar apartment and real estate crowdfunding platform 51wofang.
Like Airbnb, Tujia connects property owners with travelers looking for alternatives to hotels. The service has been up and running for three years, and now operates in 255 Chinese cities and 138 overseas cities with more than 310,000 holiday rental homes available on the platform, according to the company.
China’s short-term rental market is growing at a staggering 159.3% YOY and is worth an estimated 10.5 billion RMB in 2015, according to data from iResearch. The huge market potential has given rise to several domestic players including Ganji-backed Airbnb clone, Mayi.com, and Xiaozhu, the latter of which just secured $60 million in round C funding. While both these offerings focus on budget rentals for the domestic travel market, Tujia is targeting middle to high-end Chinese travelers who are looking for a more luxurious hotel experience.
This post was originally published on Technode.
Featured Image Credit: PR Screenshot/ Tujia