(Yicai Global) April 11 -- Xianghuanji, a Chinese phone rental startup, has secured CNY150 million (USD23.9 million) in funds, making it the biggest player in the emerging sector in terms of total A-round funding following earlier investments worth some CNY110 million.
The A+ round was led by Shanghai Chenshan Investment Management Co. and Shanghai Gopher Asset Management Co, the company’s operator Shanghai Yueyi Network Information Technology Co. said in a statement.
Xianghuanji enables consumers to lease phones through monthly installment plans, which are also available through Chinese fintech giant Ant Financial Services Group’s social credit-rating platform, Sesame Credit.
The funds will be used to boost the firm’s risk control team, as well as to improve its value-added and offline services.
The startup saw registered users surge in the second half of last year to 10 million, of which almost two-thirds are under the age of 30. Around 40 percent of users renew their plans at present, and it aims to boost this figure in the future through a better user experience.
Parent company Yueyi Network Information also operates Aihuishou, the country’s biggest recycling platform for electronic devices, and established Xianghuanji as an incubator project at the end of 2016 before spinning it off as an independent unit last July.