Dianmi Technology, a Chinese internet-based human resources service provider, announced on Tuesday that it has raised RMB200 million (US$28.87 million) in a series B round of financing from the country’s investment firm Gortune Investment.
Founded in 2015, Dianmi Technology was among the first batch of "internet plus human resources" companies that listed on the New Third Board in China. The company provides a full range of human resources services including personnel agency, outsourcing services, labor dispatch, payroll services, and human resources legal affairs. Its service outlets cover 241 cities and regions in China.
The investment came as China’s human resources industry remains as a huge and highly-fragmented segment with huge market potential. The annual output value of China’s human resources service industry is expected to reach RMB2 trillion (US$288.74 billion) in 2020, according to the Ministry of Human Resources and Social Security.
Besides traditional human resources service, the Nanjing-based Dianmi Technology also owns an online human resources platform. The platform, 2haohr.com, has served over 20 million staff across more than 600,000 corporate clients by the end of 2018.
Proceeds of this round will be used for technical team expansion and brand promotion. The company will also create core research institutions for human resources informationization, Dianmi Technology’s CEO Jiao Xuening told Chinese online publication iyiou.
Founded in 2017, Gortune Investment is a private investment company created by a number of large private enterprises in Guangdong province under the guidance of the local government. With RMB16 billion (US$2.31 billion) under management, the firm mainly backs companies in the fields of finance, healthcare, culture, high-end manufacturing, and green industries.