China’s Travelzen raises $93m, plans for onshore exit
Travelzen.com, a Chinese B2B online travel platform, has raised a RMB600 million ($93 billion) Series C round from a group of domestic GPs, having removed its variable interest entity (VIE) structures in preparation for an onshore exit.
Addor Capital, Shenzhen United Capital, Everbright Fortune and GP Capital participated in the round, according to a statement. It is claimed to be the largest funding round raised by a Chinese B2B travel site.
The online travel company previously raised two rounds of offshore funding from Keytone Ventures, according to AVCJ Research.
VIE structures are put in place to allow offshore investors to take equity stakes in companies that operate in sectors - including the internet and education - where foreign participation is restricted. Assets to which the offshore investors can have no direct exposure are held in a parallel entity owned by Chinese nationals. Contractual agreements secure the interests of the parent company in the parallel entity. But companies cannot list domestically with these structures.
As such, when a Chinese internet company wants to list onshore, it would have to dismantle the VIE structures and replace it with onshore funding. It also paves a way for foreign investors to exit.
Travelzen started as a B2C online platform in 2007. In 2011, it merged with Shanghai Ever Bright Town International Travel Service, China's largest flight ticket sales agency. Three years ago, it shifted to a B2B model with the launch of Tdxinfo.com, providing one-stop services for corporate clients including flight tickets booking, visa application, hotel reservation as well as airport pick-up services.
With the new investment, Travelzen plans to expand its scope of services provided by Tdxinfo.com, such as cruise packages, as well as establish a presence in more Chinese cities.
Lvyouquan.cn, another B2B online travel platform, raised $78 million in a Series B round of funding from a group of domestic investors in November last year.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.