Beijing-based insurtech company Xiaobangguihua has closed its Series B equity financing round, collecting RMB 200 million (USD 28.4 million), reported 36Kr on Monday.
Tencent led the round, with shareholders including Sequoia Capital China and Reinsurance Group of America also joining.
Xiaobangguihua sells self-developed online courses on how to buy insurance and financial products via various platforms including its own WeChat public account and third-party platforms such as Nicomama, ichazuo.com, investorscn.com and NetEase. It claims that has gained nearly 500,000 clients. Xiaobang means ‘help’ in Chinese while Guihua means ‘to plan’.
The startup will later provide one-on-one consultation for clients who have showed high willingness to buy insurance policies, saying it has served more than 100,000 clients all over China.
Xiaobangguihua also recommends insurance products via its WeChat public account and via a standalone app.
The company’s founder, Xu Bin, told 36Kr that the new funds will be used to further strengthen the technology platform, develop courses and improve the user experience.
Xu, who holds one masters degree in statistics and another in finance, worked for Deutsche Bank, Morgan Stanley, and Snow Lake Capital, before setting up his own business.
He told 36Kr that his company’s key capability is its all-digital process for a financial product, including customer acquisition, operation, and finally conversion into a buyer.