Lightspeed China Partners, a leading China-focused venture capital firm, has made a Series A investment in Tujia.com, the first online vacation rental services provider in China.
With this capital infusion, Tujia will expand its operations and service capabilities to meet increased demand in the emerging online vacation rental market in China, targeting middle to high-end travelers. The round also includes investment participation from CDH Investments as well as travel and vacation rental service providers Ctrip.com International (Nasdaq: CTRP) and HomeAway (Nasdaq: AWAY).
Lightspeed China Partners has been focused on early-stage opportunities in the consumer Internet and service related sectors. Earlier this year, the firm closed an investment in Meilele, which is the largest online retailer of self-branded furniture in China.
“Until now, China’s domestic vacation rental market has been a white space with significant supply and demand imbalance,” noted Ron Cao, managing director at Lightspeed China Partners. “Chinese consumers are increasingly looking for more options when they travel, and Tujia provides a unique offering with an online-offline model, and a focus on service and quality. The company’s world-class management team and first-mover advantage will position it well to become the dominate player in China’s emerging vacation rental space.”
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