BEIJING, Oct. 24, 2019 /PRNewswire/ -- Leading Chinese intelligent cloud communications service provider Cloopen announced today the securing of hundreds of millions of RMB in D Series financing led by Prospect Avenue Capital (PAC) with co-investors V Fund and Steppe Capital. Shareholder and existing investor Sequoia Capital China also participated in the round. China TH Capital acted as the exclusive financial advisor. With the investment round, Cloopen becomes the first company in the corporate communications sector to complete D Series financing.
PAC partner Liao Ming said, "We have strong confidence in Cloopen, a pioneer and leader in the cloud communications sector. Cloopen is widely recognized for its capabilities in using business acumen to develop future-ready products, growing rapidly with efficient cost control and maintaining its competitive advantage in terms of market share. We look forward to working closely with Cloopen to reimagine the potential of China's cloud communications and corporate communications markets."
Cloopen founder and CEO Sun Changxun said, "Our mission is to improve the operating effectiveness of each and every organization in the world." Cloopen has always been committed to helping Chinese companies move their communications operations to the cloud and to furthering the intelligent transformation across the industry. With the closing of Series D financing, the company will continue to implement its development strategy for the complete product portfolio and strengthen the collaboration with corporate clients with the aim of helping them improving the effectiveness of their sales efforts and customer services. In addition, Cloopen plans to increase its investments in the areas of AI-empowered communications and video applications. Steppe Capital partner Zhang Jinjian added, "We have been involved with the ongoing rapid growth of cloud communications since 2015 when we made our first investment in the industry. The growth is driven by the evolution of Cloopen into a mid-cap firm and the devotion and passion of its founder. We are honoured to grow together with such an outstanding entrepreneur as Mr. Sun."
The cloud communications market in the US continues to flourish since 2016 when leading cloud communications startup Twilio launched a successful initial public offering (IPO). Over the past 12 months, Twilio's shares had surged in value 216 percent. Market analysts believe Twilio has the potential to compete with Amazon Web Services (AWS). Additionally, the median market value of several listed cloud communications firms, including Zendesk and Ringcentral, is approaching tens of billions dollars. Notably, the market value of Zoom, which completed its IPO this year, once climbed to US$23 billion.
China's cloud communications market is also promising. According to a report issued by iResearch Consulting, the country's corporate communications market topped 667.4 billion yuan (approx. US$94.4 billion) in 2017. More importantly, large and medium-sized companies are increasingly moving their communications operations to the cloud while an intelligent transformation across the industry is underway. As a pioneer in the Chinese cloud communications sector, Cloopen has developed a strong and complete product lineup consisting of CPaaS (communications platform as a service), CCaaS (contact center as a service) and UCaaS (unified-communications-as-a-service including converged communications, IM real-time cloud communications and videoconferencing). The company continues its penetration into the industry by introducing new scenario-based communications solutions and promoting the commercialization of its Communications + AI service with the aim of empowering customers with AI. Cloopen is one of the few companies to serve each market segment in the industry. The company now has 1,100 employees, 60 percent of whom are research and development professionals. V Fund co-founding partner Zhu Feng said, "Given the potential size of China's industrial internet market, we can expect world-class operators to emerge in the vertical cloud resource and cloud computing application sectors in the near future. Cloud communications, one of the most widely used and key vertical cloud computing applications, is expected to give birth to a 100 billion yuan (approx. US$14 billion) market as it continues to grow rapidly. Cloopen has the potential to become a market leader as it has created barriers of entry to competitors with unmatched advantages in terms of technology, product, sales ability and customer success."
China TH Capital managing director Rachel said, "Interaction and communications, two of the essential needs of everyone living on the planet, also play a key role in promoting the development of a business culture. As technology continues to evolve rapidly, the carrier, approach and scenario involved in any interaction is becoming increasingly diversified. Corporation communications is now at a turning point, after which it will move to the cloud through software upgrades. As one of the pioneers in the cloud communications sector, Cloopen leverages the development of the telecommunications and internet to build its capabilities in innovative advanced technologies and now, it has become one of the few companies that has the capabilities in providing full-stack services in the industry. We are impressed by Cloopen team's commitment to customer value and integration strategy as we continue to deepen our partnership with the company. With proven excellent services and unparalleled scale, Cloopen is moving forward on the right yet challenging path."
Mr. Sun expressed his confidence in the future of Cloopen. He said, "Our vision is to become one of the world's largest intelligent cloud communication service providers."
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