Source Code re-ups in Chinese computer rental start-up

An unnamed sovereign wealth fund also took part in the round. Source Code led a $32 million Series C for Edianzu in March, alongside Shunwei Capital, Matrix Partners China, Angel Plus and Koala Fund. In total, the company has raised over RMB900 million since its establishment in 2015 and is now said to be valued more than $200 million.

Edianzu was founded by Pengcheng Ji, a second-hand computer dealer, and Bin Zhang, who previously covered enterprise service solutions for IBM. It offers IT equipment ranging from notebook computers to projectors as well as support services. Service teams are based in Beijing, Shanghai, Shenzhen, Hangzhou, Wuhan, and other cities.

Currently, Edianzu rents out more than 300,000 units to over 20,000 customers, of which around 6,000 are listed companies. It claims to have an 80% market share. Last year, the company launched a four-hour turnaround repair service, which is being offered in 10 cities.

The proceeds of the latest round will be used to accelerate the expansion of Edianzu’s service network, as well as enhance its sales ability, according to Ji. There are also plans for a wider roll-out of the four-hour turnaround service.

Edianzu claims that Chinese corporates spend around RMB160 billion ($25 billion) on computer equipment each year, while IT procurement by small and medium-sized enterprises (SMEs) is approximately RMB280 billion. Nevertheless, rental penetration is far lower than the US figure of 59%.

More companies are expected to adopt an outsourcing model, either to ensure they have the infrastructure to maintain rapid business expansion or because they want to reduce capital expenditure.

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• Topics
• Greater China
• Expansion
• Technology
• Support services
• China
• Source Code Capital
• TMT
• Growth capital