China cloud communication start-up secures $60m Series D
XYLink, a Chinese cloud communication service platform, has raised a RMB400 million ($60 million) Series D round led by Qi An Xin, a cybersecurity spinout from Qihoo 360.
Other investors include Shanghai Guohe Capital and GP Capital, both of which are sponsored by Shanghai International Group. Shanghai-based Dunhong Capital also joined the round.
Tencent led XYLink's Series C last year, which followed a RMB125 million Series B round led by ZhenFund and Zhen Cheng Fund in 2017. Lightspeed China Partners and Sinovation Ventures provided the company's Series A in 2014.
Founded in 2014, XYLink is a Zoom-style cloud-based video communication solution provider. It combines video conferencing, online meetings, chat, and mobile collaboration by leveraging cloud computing, big data, and online security technologies.
XYLink caters to more than 100,000 clients across banking, insurance, healthcare, oil and gas, and education. This includes 30 national level state-owned enterprises and 100 government agencies. IDC ranked the company as China's leading online conference provider in 2019.
Although Tencent is an investor in XYLink, Tencent Meeting is a direct competitor. All of China's internet giants have launched their own virtual collaboration and co-working space products, including Alibaba Group’s Dingding, Huawei Technologies' WeLink, and ByteDance's Lark.
In addition to front-end software-as-a-service (SaaS) applications, they aim to bring together different SaaS providers offering specific functionality from video conferencing to marketing. These end-to-end packages are positioned as platform-as-a-service (PaaS) or middle platform solutions.
Zhifeng Li, head of WeChat Work, Tencent’s enterprise coordinating tool, compares the middle platform model to a house that comes equipped with basic utilities such as water and electricity. The “fine decoration” is carried out by partners who offer SaaS applications and smart hardware that integrate with WeChat Work.
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