Chinese based apartment rental platform, Mofang Apartments, has raised a total of US$200 million from Warburg Pincus. These funds will be used to accelerate growth with the launch of its Apartment + strategy to create a one-stop accommodation lifestyle service platform for young people.
This is Warburg Pincus’s second lot of funding for Mofang Apartments to up the total investment in the latter to US$200 million, having put in US$60 million in the Mofang Apartment’s Series B financing round in 2013.
Launched in 2010, Mofang Apartments currently operates 70 offices with 10,000 apartments to service 20,000 residents in major and medium sized cities including Beijing, Shanghai, Guangzhou, Shenzhen, Nanjing, Wuhan and Suzhou.
Apartment rental brands have mushroomed these days. Some of them, such as Ziroom Apartment and YOU+, adopt a centralized model while others like Mogoroom and CK365.com go for a scattered model. Mofang Apartments offers long-term apartment rentals with a centralized model that leases apartments in a single commercial or industrial building, in the price range of RMB3,000-RMB6,000 range in the major cities Beijing, Shanghai and Guangzhou and RMB2,000-RMB4,000 in second-tier cities, vis-à-vis CK365.com’s pricing under RMB2,000.
Investments have been pouring into the long-term apartment rentals as their popularity grows. SAIF Partners invested RMB160 million (approx: US$25 million) in the sector in 2013 while apartment rental Uoko’s received US$4 million from Legend Capital for its Series A financing in 2013 and US$20 million from Matrix Partners China in the Series B financing in 2014.
Shanghai apartment rental Yujian received a multi-million dollar investment from China Renaissance K2 Ventures, Ce Yuan Ventures and IDG. Pingan Fund made a multi-million RMB investment in Mogoroom and You+ got a RMB100 million (approx: US$16 million) investment from Leijun in the end of 2014.