6renyou receives US$10 million in financing
Founder and CEO Jianqiang Gu projects that the company will break even by early next year and has set the next annual sales target at RMB200 million.
6renyou, an online travel startup offering customized travel for mid-to-high-end clients, announced that it received US$10 million in a recent round of funding. Founder and CEO Jianqiang Gu projects that the company will break even by early next year and has set the next annual sales target at RMB200 million.
6renyou went online in June 2013 and received a multi-million US dollar angel investment from K2 Ventures and TXD Ventures in July 2013. It also received US$10 million from China Growth Capital in its A round funding in July 2014.
Mr. Gu said funds from the latest round of financing would mainly be used to develop mobile apps and put together an expert service team. Another round of financing has been planned for next year.
“Our company targets mid-to high-end clientele offering customized travel, a new travel solution that is somewhere in between package tour and FIT,” he said. “We use a C2B business model – users send us their requirements via our website and Wechat QR code and we respond with a customized travel proposal and booking suggestions”.
“6renyou mainly offers individualized outbound travel solutions for families and friends traveling together. In addition to customizing an itinerary, our platform also offers a one-on-one travel butler service to provide a travel consultant and ensure a complete user experience for our clients,” he said. It is understood that 6renyou consolidates service suppliers in destinations to simplify service details.
However, the business model limits the growth of its customer base in the early stages. “Currently we have around 200,000 users that we mainly get through Wechat and SNS, with around 10% order conversion,” he said.
Currently 6renyou dispatches more than a hundred customized tours every month and has RMB3 million turnover every month.(Translated by David)