Apartment service provider Chengjia (Cjia.com), which is a subsidiary of the Huazhu Group, yesterday announced that it raised nearly USD 300 million in its Series A funding round led by Boyu Capital. Other investors included Alibaba-affiliated Yunfeng Capital, Huazhu Group, Ascott and CCB International, the investment banking arm of China Construction Bank. China Renaissance was the exclusive financial advisor. It was the single largest financing sum in the long-term apartment rental sector.
Founded in 2015, Chengjia is Huazhu’s strategic foothold in the alternative accommodation business. Huazhu president Mr. Hui Jin also serves as Chengjia’s CEO. The platform has launched eight brands in three major product categories, namely apartments, hotels and services.
Chengjia has 100-plus properties and operates more than 20,000 rooms in targeted first-tier cities including Beijing, Shanghai, Guangzhou and Shenzhen. “The real challenge of integrating short- and long-term rental services lies in setting up the operation and IT systems rather than the business model itself. The future of Chengjia will be driven by data and technology,” said Mr. Jin.
The proceeds from the latest funding round will be used for expanding its property portfolio in core cities, building the brand and developing its technology platform. It adopts a model with a mix of heavy and light assets, and will offer property rental and management services while acquiring properties to expand its business scale.
Chengjia received USD 50 million in its series Pre-A round financing in July 2017 from Huazhu and IDG Capital to expand its property collection and enhance the information system and operation service, according to 36Kr’s report.
Previous funding rounds:
September 2016: RMB 10 million seed round
July 2017: $50 million Series Pre-A from Huazhu Group and IDG Capital
September 2019: $300 million Series A led by Boyu Capital (Translated by Elena)