Zhongneng United, a Chinese aerial work platform equipment rental company, announced on Tuesday that it has raised RMB1 billion (US$145.26 million) in a strategic investment from a group of financial institutions including state-owned Industrial and Commercial Bank of China (ICBC).
Other investors in the new round include China Merchants Bank, Huayun Financial Leasing Co Ltd, as well as Chinese local commercial banks, Bank of Jiangsu and Bank of Ningbo, said Zhongneng United in a statement released on its WeChat official account.
The investment took the total capital raised by Zhongneng United in 2019 to RMB1.5 billion (US$217.89 million), according to the statement. Along with the strategic investment, the start-up also unveiled the completion of RMB150 million (US$21.78 million) in a series B+ round of financing from Five Star Holdings.
Zhongneng United closed US$50 million in a series B funding round led by Chinese venture capital firm Source Code Capital, with participation from Buhuo Ventures, in April 2019.
Zhongneng United, fully known as Zhongneng United Digital Technology Co Ltd, was registered in October 2016 in eastern China’s Nanjing city. The company mainly provides engineering equipment rental solutions with a focus on aerial work platform equipment rental services.
Zhongneng United said that it has recorded 10,000 fleets of engineering equipment, serving over 10,000 clients as of March 2019. The company has built a network covering warehousing, logistics, marketing, and after-sales services in 33 cities across 22 provinces in China. It has formed strategic cooperations with equipment manufacturers at home and abroad including JLG Industries, Lingong Group, and Haulotte.
Proceeds will be used to enhance the services provided by Zhongneng United, and help speed up the popularization and application of aerial work platforms in China. This will further promote the transformation and upgrading of the Chinese construction machinery industry, said the company.
Zhongneng United raised RMB62.5 million (US$9.30 million) in a series A round led by venture capital firm Buhuo Ventures in September 2018. The company also raised tens of millions of yuan in a series pre-A round in July 2018.