Chinese Airbnb clone Xiaozhu valued at US$300m as investors tap China’s ‘sharing economy’

A Chinese start-up that helps people rent out their houses and apartments for short periods of time has secured US$60 million in Series C funding from a quartet of private equity firms, as interest grows in China’s shift to a so-called sharing economy. 

Beijing-based Xiaozhu, which has a business model resembling that of US company Airbnb, said on Wednesday the funding round was led by Joy Capital. 

Other investors include Hong Kong family fund Morningside Ventures, Heyu Capital, and Citic Capital, in which sovereign wealth fund China Investment Corp is a part owner, it said. This puts Xiaozhu’s value in excess of US$300 million.

Chief executive Chen Chi told TechNode that the company would use the new funding to improve user experience, staffing, research and development, and brand awareness. 

“The sharing economy has a huge influence on China’s internet sector, and our investment in Xiaozhu reflects our bullish view on how the sharing economy is bringing about disruption in the traditional lodging sector,” Xiao Li, a founding partner of Joy Capital, told the Wall Street Journal.