China Airbnb rival raises nearly $300 million from Jack Ma fund

Latest news

    BEIJING (Reuters) – Chinese short-term rental firm said on Wednesday it has raised nearly $300 million in a funding round led by Jack Ma’s Yunfeng Capital, amid fierce competition from U.S. giant Airbnb Inc and local rival

    The company did not disclose its new valuation but said in November 2017 that it was worth more than $1 billion after closing a $120 million round, also led by Yunfeng Capital.

    Xiaozhu said it will also launch a smart service and security system for its platform backed by technology from Alibaba Group Holding Ltd.

    China’s domestic tourism market has expanded rapidly in recent years, driven by a fast-growing middle class and the proliferation of online travel services.

    The short-term rental market however is heavily regulated, due in part to strict address registration regulations, and local services have expanded heavily into value-added services to drive profits and beat competition.

    As of April, Xiaozhu launched a full-service option that does not require landlords to interact with guests, including photography and cleaning services and internet-connected door locks.

    It says it uses Alibaba’s facial recognition technology in its door locks in about 40 cities.

    Xiaozhu said it currently has over 500,000 active listings.

    The company’s top rival,, raised $300 million in October 2017 and is backed by Chinese travel-giant International. At the time it claimed to have about 650,000 listing on its platform.

    Airbnb is also beefing up its presence in China, though it has been forced to comply with strict regulations, including disclosing host information to Chinese government agencies.

    View the original article:

    The U.S. firm, along with Tujia and Xiaozhu, has also been required to close off listings during politically sensitive events, including China’s Party Congress.

    Reporting by Cate Cadell; Editing by Stephen Coates

    In the same category are

    Fintech making inroads, but U.S. bank revenues little changed: report NEW YORK (Reuters) - Financial technology startups and other new entrants are making inroads in the U.S. banking market, but have yet to capture a thr...
    Realpage settles U.S. charges over tenant screening reports (Reuters) - Realpage Inc, which provides technology to the real estate industry, agreed to pay $3 million to settle charges that its tenant screening ...
    OnDeck launches new subsidiary to partner with banks NEW YORK (Reuters) - OnDeck Capital Inc has set up a subsidiary that will provide technology and other services to banks looking to lend to small busi...
    ST Engineering wins $5.5 million Singapore contract to test smart lamp-posts SINGAPORE (Reuters) - Singapore Technologies Engineering has won a S$7.5 million ($5.5 million) contract for the trial of a smart lamp-post project in...
    Ubisoft shares rise to beat market sell-off after good sales for video game PARIS (Reuters) - Shares in French video games maker Ubisoft rose by around 1 percent on Thursday, making them one of the few stocks to rise despite a...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.