Mofang Apartment, the Chinese startup that provides institutional rental apartments, has raised $150 million in venture funding.
According to a report in Deal Street Asia, the Series D round of funding was led by CDPQ, the Canda-based institutional fund management company. CDPQ manages funds for public pension and insurance plans, noted the report. Mofang, which has already raised $400 million in three previous rounds, has the backing of Warburg Pincus, which the report noted is its biggest shareholder. DT Capital and AVIC Trust are also investors in the company.
Mofang Chief Executive Kitty Liu said in a statement that the funding enables the company to expand its presence, enhance operational capabilities, improve its IT and membership system, make acquisitions and expand its franchise business. The company plans to pursue partnerships with players in the local market such as state-owned enterprises so that it can establish a presence in more cities in China.
“As a long-term investor, CDPQ seeks to be a constructive shareholder, working together with the management team and partners to build and grow good companies. Mofang is a promising company and is the leader in the long-term apartment rental market, whose team has strong expertise in operations, project development and M&A,” said CPDQ Head of Private Equity for Asia Pacific Lim Meng Ann in a statement.
Mofang has been acquisitive in the past and has co-developed projects with real estate operators to expand its footprint in China. That has impressed Warburg Pincus, which said in the report the firm is impressed with Mofang’s development during the past six years when it first made an investment in the company. “Having a well-known and reputable investor like CDPQ will help Mofang accelerate its development and further consolidate its leadership position. Warburg Pincus will continue to support Mofang’s future development through various means, including real estate financing and property resources,” said Warburg Pincus Managing Director Joseph Gagnon.