Beijing Zhiketong Technology, a digital marketing service provider offering SaaS-supported transaction services, recently announced that it had raised RMB 300 million in its C round financing. Sequoia Capital China led the series C1 funding, also joined by IDG Capital, Shunwei Capital and LightSpeed China Partners. Vision Plus Capital led the series C2 funding, joined in by Sequoia Capital China, and CYTS Hongqi Fund led the series C3 funding.
Zhiketong claimed that the proceeds would be used for technology innovation and business expansion to provide top-rated hotels and attractions with more efficient solutions to acquire customers and improve retention.
Zhiketong has secured a total funding of nearly RMB 480 million since its incorporation in December 2014, including RMB 110 million in its B round financing this June, RMB 100 million from IDG Capital and LightSpeed China Partners in 2017, RMB 1 million from eLong in an angel round in 2015, and funding from Series A round led by Gobi China in July.
It is the first company to receive over 100 million yuan funding among digital marketing solution providers leveraging the Wechat ecosystem to service hotels and attractions.
Zhiketong’s data showed that its partner merchants grossed RMB 400 million in monthly transactions while major large-scale merchants contribute over tens of million yuan. It also claimed that the top hotel players supported by its marketing solutions have achieved 10% of the total revenue from the Wechat direct booking channel, and merchants who have used Zhiketong services for over a year had more than 40% repeat business.
Zhiketong targeted five-star hotels in its early stages. “Five-star hotel brands generate higher revenue per hotel, and their diversified offerings enable us to provide multidimensional marketing services,” the founder and CEO of the company Liu Hua said.
Mr. Liu claimed more than 3,000 five-star hotels in China have adopted Zhiketong’s Wechat direct booking channel and digital marketing solutions, among them were hotels of Wyndham Hotels & Resorts, Rosewood Hotel Group and Wanda Hotels & Resorts.
Zhiketong also targets attractions. It has formed partnerships with 41 attraction operators including Wanda Theme Park. (Translated by Elena)