Hyperchain Technologies, the independent blockchain platform developed by Fun Chain, has announced a series B fundraising round of 1.5 billion RMB (approximately $226 million).
According to the Chinese blockchain startup’s press release, once funding is complete, Hyperchain Technologies will become the “first quasi-unicorn” company in the blockchain industry.
Hyperchain, founded in 2016, is an enterprise blockchain and distributed ledger technology provider and supplies enterprises a data trading system, supply chain finance system and securities assets system.
Hyperchain has previously raised a pre-series A round from Sunyard System Engineering Company Ltd., Chinese IT sourcing service provider Insigma Technology Co., and Lianlian Pay. It raised a Series A from a subsidiary of Fosun Group. As for their recent Series B, the raise was from Xinhu Zhongbao Co Ltd, China SDIC Gaoxin Industrial Investment Corporation, Ideal International, Lanshi Investment, Yongshen Investment, Jingyi Investment, and Huiren Wenqu Investment.
The Chinese startup mentioned in their press release that their Series B round of financing is a “mixed investment structure including national investment institutions, listed companies, and traditional funds.”
Hyperchain Looks to Rapidly Expand their Blockchain Services
The company announced that the funds would be used to update their technology and expand the business. The Chinese blockchain-based startup plans to apply their technology in different industries.
“With this financing as an opportunity, Fun Chain Technology will further improve its leading position in the field of technology, and at the same time begin the ecological layout of blockchains in finance, healthcare, energy, trade, logistics, and government affairs,” said Li Wei, the CEO of Fun Chain Technology. “No privacy leaks data exchanges and other practical problems, so as to achieve better distribution and collaboration, better trust in society and better business practices.”
Hyperchain Technologies currently serves China UnionPay, China Everbright Bank, and Industrial Bank of China. In 2017, the Chinese startup made revenue of RMB 1.84 million (approximately $286,707). The company however endured a net loss of RMB 15.21 million (roughly $2.37 million).
China to Become a Front-runner in the Blockchain Space
Although China has clamped down on cryptocurrencies, Hyperchain’s substantial Series B raise shows how fast China is to jump on the blockchain wagon.
As reported by the South China Morning Post, “China does not want to miss out on any big technology trend, as they invest big in artificial intelligence/machine learning since it is an obvious bet on the future and a relatively low hanging fruit,” said Spiros Margaris, a venture capitalist in the finance technology industry. “They will want to control who can participate and more importantly who can control it.”
In September 2017, China ordered all cryptocurrency exchanges to be shut and cracked down on initial coin offerings.
“There is a very clear separation between digital currencies and blockchain in China at the moment, so it is likely we will see blockchain projects continue to develop,” said Zennon Kapron, the managing director of Kapronasia, a financial consulting company.