Chinese business services platform Xiaoetong has secured USD 120 million in a Series D round from investors including Hillhouse Capital, IDG Capital, GGV Capital, and Qiming Venture Partners. The latest investment builds upon the startup’s Series C round completed in October 2020 that featured backing from Tencent.
Founded in 2016, Shenzhen-based Xiaoetong offers customers a suite of digital tools to coordinate brand marketing, digital traffic, and sales channels, with a focus on the WeChat ecosystem. The company aims to provide enterprises with a one-stop platform to manage their entire digital operations.
“Xiaoetong’s goal is to serve as a bridge between enterprises and users to create a shared digital CTO for businesses,” Fan Xiaoxing, the company’s co-founder and COO told 36Kr.
The firm will allocate its fresh funds toward improving its product by strengthening research and development capabilities as well as recruiting operational talent. At the moment, it already has more than 1.6 million registered customers. Some of Xiaoetong’s notable enterprise clients in China include New Oriental Education, Tencent University, DJI, and China Asset Management.
Using Xiaoetong’s platform, the startup’s enterprise clients have created 20 million new proprietary business processes or products, reaching a total of 780 million end users. While adding localized service teams to aid clients in various sectors, Xiaoetong also offers training programs for client firms’ employees on how to optimize the use of WeChat’s range of communication, brand marketing, and e-commerce tools. The platform covers other increasingly popular publishing channels as well, like short video apps Douyin and Kuaishou.
“Xiaoetong started out as a tool for content publishing but stuck to its vision of becoming a trusted virtual CTO for clients. This helped the company seize opportunities in areas like the WeChat ecosystem, private domain traffic, and livestreaming. As Xiaoetong continues to expand, we can see many companies using its products to innovate from the bottom up and we look forward to watching the team continue to enable enterprises to realize their digital transformation,” IDG Capital partner Niu Kuiguang told 36Kr.
KrASIA Connection features translated and adapted content published by 36Kr. This article was originally written by Peng Xiaoqiu for 36Kr.