Chinese home-sharing site lands USD15 million backing
Chinese home-sharing site lands USD15 million backing
This online rental platform in China is gaining a fast following
Singaporean property developer City Developments Ltd, will be investing CNY100 million (USD15 million) in mamahome, an online apartment rental platform based in China.
Through its subsidiary CDL China Ltd, the developer will be acquiring a 20 percent stake in the company, founded by Shanghai Chongfu Investment Holdings. In effect, it will be joining such investors as E-House Capital, which has a 24 percent stake in the startup.
“Our partnership with mamahome provides an immediate entry into a fast-growing sector driven by business and leisure travel in China,” CDL China CEO Mark Yip said. “It will contribute to future long-term recurring income streams to CDL.”
The investment is part of City Developments’ expansion efforts within mainland China, where mamahome currently has more than 100,000 apartment listings. Mamahome also provides management for its own brands of serviced apartments: Suisse Place, Locca and Login.
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For those thinking the startup would be China’s answer to Airbnb, mamahome listings are designed to be rented out from the “mid- to long-term” to leisure travellers and business executives “on assignments and postings.” The platform moonlights as an online booking website, online management software, and provider of value-added services like housekeeping, renovation, 24-hour concierge and call centre.
“Operating under an asset light model with a focus on internet expansion, mamahome represents an efficient manner to grow market share and can also serve as a good platform to enhance leasing efforts for the Group’s residential leasing properties and serviced apartments,” Yip said.
Yuan Ye, mamahome founder and Shanghai Chongfu CEO, has high expectations of the apartment rental market in China. “Through the strategic partnership with CDL, we will be able to integrate our expertise in China with CDL’s strong branding and experience in the global hospitality sector, offering customers a seamless Online-to-Offline experience and high quality services,” he said.
Home-sharing is a fast-growing sector in China, and Singaporean developers are taking note. Last year, Chinese vacation rental website Tujia.com, an online marketplace often compared to Airbnb, raised USD300 million in a funding round led by Singaporean property firm Capitaland Ltd.
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Source: Property Report