IDG Capital and Chinese hotel management company Huazhu Hotels Group Ltd. have led a US$50 million pre-A round in Chengjia Apartment, an apartment rental start-up.
“The apartment rental industry will definitely experience significant development and at the core of that industry is Chengjia’s operating ability and property management skills,” said Jeacy Yan, a partner at IDG, in a statement. “Chengjia’s team have experience in both managing economy hotels and turning traditional hotels into apartments for rental.”
Chengjia Apartment was founded in 2015 by IDG and Huazhu. It provides apartments with flexible rental periods at different price levels, such as budget apartment targeting young people, middle-range apartments for people to share, and light-luxury apartment with home innovations.
The company currently cooperates with 50 property management companies in tier-one cities across China, offering over 5,000 apartments, 95% of which are long-term rentals. It plans to expand its cooperation to over 100 property management firms with 10,000 apartments by the end of this year.
The start-up plans to use the proceeds to expand its business, build up its online information platform and enhance its services.