IDG leads $120m round for China SaaS player Xiaoe Tong

Qiming Venture Partners, GGV Capital, and GL Ventures also took part in the round.

Founded in 2016, Xiaoe Tong - the name means smart little goose in Chinese - is popular among content providers that want to offer paid lessons via official WeChat accounts.

It has served more than 1.6 million registered customers including New Oriental Education & Technology, TAL Education, China Asset Management, and Tencent University. Customers have produced a total of 20 million knowledge products, catering to 780 million end-users. The peak for simultaneous online users exceeds 10 million, according to a statement.

Xiaoxing Fan, Xiaoe Tong's co-founder and COO, explained last December that the company has three major business modules. First, there is a SaaS product featuring more than 200 online school platform-building tools. Users can develop their own apps, websites, micro homepages, and content monetization tools at low cost.

Second, Xiaoe Tong is active in content distribution, focusing on channels such as WeChat, TikTok, Baidu, Youku, and Xiaomi. This is supposed to solve the problem of institutional customer acquisition. Third, there is an offline training business that provides instruction on how to get online.

“Xiaoe Tong started as a knowledge payment tool and has stuck to its mission of being a trusted CTO [chief technology officer] for customers. It has seized on many industry opportunities such as the WeChat ecosystem, private domain traffic, and live broadcasts. Companies are using Xiaoe Tong to introduce innovation to their business models and achieve bottom-up digital transformation," said Kuiguang Niu, a partner at IDG.

China Renaissance was the exclusive financial advisor for the Series D.

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• Topics
• Greater China
• Expansion
• Technology
• China
• IDG capital
• GL Ventures
• Qiming Venture Partners
• GGV Capital