Chinese rental services company Ziroom has raised more than RMB 4 billion ($621 million) in its latest funding round, according to the startup’s CEO Xiong Lin, Caixin reports.
The enormous tranche of funding, the largest ever recorded for a rental services company, means that Ziroom is now valued at RMB 20 billion, sources told Caixin. The funding round was led by US private equity firm Warburg Pincus, as well as Tencent Holdings, Sequoia Capital and others.
Ziroom is likely benefitting from the recent push by the Chinese government to develop the rental housing market, as huge rises in property prices have made owning a home increasingly difficult for many individuals and families.
The company focuses on leasing apartments from individual owners and then renovates them to high standards, before subleasing them to renters. It plans to use the cash injection to increase its rental supply, boost its support services and invest in its technology and employee training, Xiong said.