Sequoia, Banyan lead $51m round for China’s Xiaodian
Sequoia Capital China and Banyan Capital have led a RMB350 million ($51 million) Series B round of funding for Xiaodian, a Beijing-based power bank rental company.
New investors Fosun Kinzon Capital and Zhongwei Capital also participated, while existing backers Tencent Holdings, Vision Plus Capital and CDH Investments all re-upped.
Operated by Beijing Yidianyuan Network Technology, Xiaodian was founded in 2016 by a team of former employees at Alibaba Group and Foxconn Technology Group. The company develops portable power banks that are placed in public locations such as restaurant and subway stations.
Users access the power banks by scanning a QR code via the Xiaodian app or WeChat and pay RMB1 a time to recharge their smart devices. Once charging is completed, they return the power bank to any shop that has a partnership with Xiaodian. With no deposit required, users can pay via WeChat Wallet or Alipay.
At present more than 10,000 merchants in tier-one cities including Beijing, Shanghai and Guangzhou provide Xiaodian’s power bank rental services. The company plans to expand its presence into 30 Chinese cities within one month, according to a statement.
Xiaodian raised an angel round in March led by GSR Ventures and angel investor Gang Wang, with participation from DT Capital Partners, CMB International and In Capital. Last month, the company received a Series A round of approximately RMB100 million led by Tencent and Vision Plus. CDH, Daosheng Investments and existing investors also took part.
Power rental start-ups represent the latest target for investors looking to back sharing economy concepts, although it remains to be seen if there is sufficient demand to scale these services.
Recent activity in the space includes a RMB300 million investment in Jiedian, which is backed by IDG Capital, from Chinese online retailer Jumei International, and a $20 million Series A round for Shenzhen-based Laidian from SIG and Redpoint Ventures China. Lightspeed China Partners also led a Series A round for Hi Dian.
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