Chinese cloud computing platform QingCloud just announced that they’ve closed on a $158 million Series D and are preparing to go public in the near future.
Behind the investment frenzy is the huge potential of this market. A report from research institute CCID shows that China’s cloud computing market surged 41.7% YOY to RMB 279.7 billion in 2016, forecasting that this figure would reach RMB570.64 billion by 2019 with an annual growth rate of over 20%.
The emergence of several unicorns over a relatively short period of time is signifying a deeper change in the market. In line with the second-half era proposition proposed by Meituan-Dianping CEO Wang Xing, the cloud computing startup pointed that China’s cloud computing market is also entering a special transition point for a new period. While cloud computing platforms only used by non-core businesses for financial clients like banks, insurance, and security companies in the first-half era, it will find wider application in the new era.
The size of this investment puts QingCloud in the same realm as other Chinese firms like Dt Dream and Cloudcare, both of which also closed large rounds in June. It’s clear from where investors are putting their money that cloud computing is a big bet in China and the space is poised to grow exponentially in the next few years.