China-based blockchain platform developer, Qulian Technology, has announced the completion of a 1.5 billion Chinese yuan ($234 million) Series B funding round.
Founded in 2016, Hyperchain is an enterprise blockchain company located in Hangzhou, China. The platform ranks first in the technical evaluation of many large and medium-sized financial institutions and is among the first batch to pass the standard test by China’s Ministry of Industry and Information Technology and the Institute of Information and Communication Technology. The company’s clients include China UnionPay, China Everbright Bank, and Industrial Bank of China.
After the disclosure by Xinhu Zhongbao, Qulian recorded a revenue of 281,000 dollars with a net loss of 2.34 million dollars in 2017 when it was valued at 234 million dollars. This is the second time Xinhu has publicly expressed support for blockchain developer since it purchased some shares in April 2018 during a time when Xinhu valued the company at 78 million dollars.
Qulian has increased in value by three three-fold in three months something which has drawn concerns from Chinese financial regulators. According to a letter published in May, Shanghai Stock Exchange required Xinhu to justify the rapid change in the firm’s valuation.
Hyperchain CEO Li Wei said the funding will be used to further improve its position in the blockchain industry and work towards implementing the technology in various sectors, such as finance, medical care, energy, trade, logistics, and government.
“We will start building the ecosystem in the blockchain industry,” said Wei, “We will serve the real economy and solve the financing difficulties of SMEs through blockchain technology.”
The Series B funding round follows a pre-A round which saw participation from Sunyard System Engineering Company Ltd., Insigma Technology Co., Ltd., and Lianlian Pay. Hyperchain has also raised a series A round from a subsidiary of Fosun Group. This investment is one of the largest traditional funding in the Blockchain space to date even though Robinhood’s $363-million-dollar funding is still ahead.