Chinese IT equipment rental services brand Little Bear Rental announced on Thursday that it has raised several hundred millions of yuan in a series B round of financing led by venture capital firm Oriental Fortune Capital, and a government-guided investment vehicle, China National Small & Medium Enterprises Development Fund.
Returning investors, venture capital company Fortune Venture Capital and government-backed Great Wall Fund, also poured money into this round, according to a company statement.
Founded in May 2013, Little Bear Rental serves as an online leasing platform operated by Shenzhen Lingxiong Rental Service Co. The company engages in businesses like IT equipment rental, technical service, recovery and sale of IT equipment, rental solution customization, and enterprise asset management. It teamed up with Chinese e-commerce giant JD.com in May 2018 to start providing smart office solutions that can help enterprises better manage their software and hardware devices.
The Shenzhen-based company has provided over 250,000 office facilities to more than 30,000 companies including Chinese tech giants including Alibaba and Baidu, Bank of China, residential real estate developer Vanke, General Electric, and smartphone maker Xiaomi, according to the company’s website.
The IT equipment rental field in China bears a market worth at least RMB100 billion (US$14.49 billion). The Chinese market penetration rate is still low compared with mature markets in Europe and America, which leaves a huge growth space, said Chang Jinyong, chairman of Great Wall Fund.
Proceeds of this round will be used to build an intelligent service system and speed up the construction of service outlets nationwide. The company also plans to improve customer service experience and further expand the coverage of its VIP service to provide "two-minute response, 20 minutes on-site check, and two-hour problem-solving service."
The new round marks the fourth funding round that Little Bear Rental completed in one year. The company raised RMB150 million (US$21.73 million) in a series pre-B round jointly led by Great Wall Fund and Fortune Venture Capital two month earlier.
It also collected RMB100 million (US$14.49 million) in a series A round from JD.com and Fortune Venture Capital in May 2018, before it received an investment worth tens of millions of U.S. dollars from JD.com in December 2018.
The China National Small & Medium Enterprises Development Fund, with RMB60 billion (US$8.69 billion) in assets under management, was launched by the Chinese government in September 2015 to support technology-enabled small and medium-sized enterprises (SMEs) through financial reforms and preferential policies.