Hecom Receives $35M in Investment From Sequoia China and Weilai Qichuang

Hecom (Beijing) Technology Co., Ltd. recently announced it has secured 225 million yuan ($35.4 million) from Sequoia China and Weilai Qichuang. Previously, Hecom has received funding from many notable investors and institutions, such as Xiaomi founder Lei Jun, Fosun RZ Capital, Peakview Capital, OFC and New Hope Group.

On February 7, 2022, Hecom announced it had submitted counseling materials for the public offering of its shares with a listing on the Beijing Stock Exchange (BSE). The documents, which were reviewed by the Beijing Bureau of the China Securities Regulatory Commission on January 27, were accepted on January 29. The counseling institution was China Capital Management. Upon approval, Hecom will become the first SaaS (software as a service)-based firm to be listed on the BSE.

Public information suggests Hecom focuses on emerging software operation services, and mainly provides mobile marketing management services based on SaaS and cloud technology for enterprises.

Hongquan CRM, Hongquan Tong and Hongquan Marketing, the core products of Hecom, represent are a new generation of enterprise-level sales management services system based on the Hecom’s existing products and upgraded and built on PaaS platform. Its paid customers are in over 40 industries, including FMCG, agriculture and animal husbandry, medicine, garments, building materials and decoration, and moreetc. The customers include many famous enterprises such as New Hope Liuhe, Fosun Pharma, Sanyuan, COFCO and Beijing Yanjing Brewery.

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Hecom has not published its annual report for 2021. Its 2021 Semi-annual reports indicate narrower losses and promising future developments.

In the first half of 2021, Hecom earned 66.91 million yuan, a year-on-year increase of 41%. The net profit was a loss of 420,000 yuan, significantly lower than that in the same period of 2020, which was a loss of 1.23 million yuan. The 2021 semi-annual reports also suggest main business revenue all comes from SaaS subscriptions, with a gross profit margin as high as 77.66%.