Tujia.com founder and CEO, Luo Jun, announced via an internal message that following the separation of Tujia’s online and offline departments, the online platform has successfully completed its ‘E’ round of funding.
“For this round, our online platform business raised 300 million USD, at a valuation of over 1.5 billion USD. The lead investors were Ctrip and All-Stars Investment, with China Renaissance’s New Economy Fund, Glade Brook Capital, and G Street Capital also participating in the round,” said Luo Jun.
Following the company’s D and D+ rounds of financing completed in August of 2015, the capital market has once again showed its continued support in Tujia.com as it remains the most funded player and maintains its reputation as a ‘unicorn’ in the accommodation sharing industry.
This round of financing – the first independent round since the separation of Tujia’s online and offline departments – reflected the great confidence and optimism that the capital markets have toward Tujia’s online platform.
Leading China’s alternative accommodation industry
Tujia has achieved exponential gains in the domestic market, with transaction volumes growing over 300 percent year-on-year. Internationally, especially in Asia, Tujia has grown exceptionally, increasing fivefold this year.
On the eve of the 2017 National Holiday or “Golden Week,” Tujia released its “Tujia Mansion” product, which received unprecedented positive responses and saw transaction volumes during the Golden Week exceed the previous year’s by 400%. With an average nightly price for a single room exceeding 3,000 RMB and the most expensive room at 45,000 RMB, “Tujia Mansion” demonstrates the growing demand for luxury offerings by high-end customers. Following the introduction of the “two-child policy,” Tujia is best positioned to capitalize on the increase in demand for family-friendly accommodation options.
In his internal message, Mr. Luo revealed that Tujia has maintained steady growth in its business since the D and D+ rounds of financing. He said the funds raised from this round would be used both to “work towards optimizing the user experience by standardizing aspects of our alternative travel accommodations such as linen washing, cleanliness, and smart capabilities,” and to “further invest in the domestic high-end real estate market and in foreign markets.”
Luo Jun also emphasized: “As technology and creativity are the industry’s foremost sources of productivity, Tujia will continue as always to constantly make breakthroughs in the areas of innovative technology and business, leading the way for China’s alternative accommodation industry.”