Chinese home-sharing startup Danke Gongyu bags $500m Series C
Chinese home-sharing startup Danke Gongyu has raised $500 million in a Series C round co-led by existing investor Tiger Global Management and new investor Ant Financial, said a statement by Gaorong Capital, also an existing investor who joined the latest round on Friday.
Primavera Capital, Joy Capital and CMC Capital also participated in the round. The latest funding round has brought Danke Gongyu’s valuation to about $2 billion.
According to the startup’s founder and CEO Gao Jing, the new funds will be used to upgrade Danke Gongyu’s data processing system for rental transactions, boost operational efficiency, cut costs, improve quality of apartment amenities and tenant experiences as well as to explore the emerging housing market for blue-collar workers.
Founded in 2015, Danke Gongyu now has presence in 10 tier-1 cities in China including Beijing, Shenzhen, Shanghai and Hangzhou. It last raised a $70 million Series B+ led by Tiger Global Management, four months after it completed a $100-million Series B round.
In January, Danke Gongyu is said to have acquired Whale Capital-backed housing asset management platform iShangzu for $200 million, bringing the number of assets listed on Danke’s platform to around 400,000.
Rental options have become an attractive alternative than buying a home due to skyrocketing property prices in China’s major cities.
Last year, the Chinese market has seen a flurry of fundraising activities among home-sharing and rental platforms. Chengdu-based Uoko raised a $157-million Series C1 financing from Shenzhen Venture Capital, Greentown Service Group and Galaxy Holdings. While Morgan Stanley Private Equity Asia has co-led more than $100 million in a Series C round in Qingke last April.
However, could it also mean that a bubble is brewing in the rental platform industry? Recently, a once-unicorn home rental platform operator, Ai Wu Ji Wu, has reportedly gone into liquidation after raising $305 million in funding since 2014.
Some of the big-ticket investors in the startup include Hillhouse Capital, GGV Capital, Morningside VC and Singapore’s Temasek Holdings. Ai Wu Ji Wu’s website has already been replaced by information about a new apartment rental.