VCs to take Kingsoft across borders, platforms

Inviting three external venture capital investors to provide $50 million in funding to Kingsoft Office Software, the company's enterprise software subsidiary, was therefore about more than just money.

"If you are operating in the internet world it's not just capital and it even goes beyond the product as well. If you have a great product, the question in the mobile internet sector is how do you leverage your advantage," says Jenny Lee, a partner at GGV Capital. "They are thinking about what it takes to bring a product to the international market."

GGV is one of the three investors, alongside Morningside Technologies and Shunwei Capital Partners. GGV and Morningside will both have representation on Kingsoft Office's board of directors and play an active role in developing the business' global strategy.

Shunwei already has a connection to the parent company. The VC firm's founder is Lei Jun, was a co-founder and previously CEO of Kingsoft. He is currently company chairman.

Lei is partly responsible for the creation of Kingsoft Office. In 2012, the subsidiary was spun-out through a management buyout - although Kingsoft remains the major shareholder - completing a restructuring of the parent company's three major subsidiaries. Its enterprise software, internet security software and entertainment software divisions now operate with greater independence.

A fourth arm to the business - cloud computing provider Kingsoft Cloud - is at a more nascent stage of its development.

For the newly empowered Kingsoft Office, the challenge is taking its longstanding battle with Microsoft Office for supremacy in China across borders and onto new platforms. The business achieved new record sales of more than RMB195.8 million in mainland China and Japan in 2012, with monthly active users of its WPS Personal Edition rising to 43.3 million.

WPS Mobile Office - available as a free-to-download app for Android and iOS devices, with users paying for value-added services - had more than 11.2 million global monthly active users, in 226 countries and regions, in 2012.

"We like companies that can change existing ways of doing business," says GGV's Lee. "We would prefer to do everything on a tablet rather than a laptop but it's difficult to get a productivity software suite that allows you to work seamlessly on a tablet. You need experience working with different operating system and formats. That is what we are betting on with Kingsoft Office."

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Venture
• Technology
• Greater China
• Early-stage
• TMT
• GGV Capital
• Morningside Technologies
• China
• Outbound investment
• Venture