Cathay Innovation leads the $10 million Series B round of Tuboshi, a leading real estate marketplace in China
January 22, 2017 – Cathay Innovation has recently invested in Tuboshi, a real estate marketplace in China which can be compared to Zillow in the United States. Tuboshi powers the real estate industry, and especially consumers, with comprehensive and reference information on transactions, to build “the smartest real estate brain” in China. This new financing round was led by Cathay Innovation, with additional funding from Lightspeed China Partners and RSP China Fund, which participated in the previous financing round, as well as LLC. This financing will be mainly used for regional development and R&D.
Considering real estate and housing market, asymmetric information has always been the biggest pain point for consumers during transactions and negotiations in China. Founded in 2016, Tuboshi specializes in housing price assessment, using residential areas as points of interest, and combines big data plus artificial intelligence technologies to provide consumers with a free house price inquiry tool. Tuboshi built a nation-wide database which already covers 30 cities, 65% of new home transactions as well as 80% of secondary transactions data, and completed a real-time valuation of nearly 7 million buildings. Tuboshi also offers two unique features: a Monthly Market Review which assesses whether a city is worth the investment or not; and a District Guide which provides data-based explanations on whether you should buy a house or an apartment in a given area or not. Tuboshi reached around 5 million users on its platform in less than one year without acquisition costs, proving the value and the attractivity of its offer for Chinese consumers.
Liu Yu, Founder and CEO of Tuboshi, said: “As part of the Property Tech wave, Tuboshi is going through strong growth and new steps of development. Prop Tech 1.0 was the informatization of the real estate industry, 2.0 saw the improvement of buy-sales match, and now recent opportunities focus on the use of big data and algorithms. The size of the real estate industry and its strong connection with markets such as financing and home decoration, indicate there is room for further growth in our field.”
Nicolas du Cray, Partner at Cathay Innovation, added: “Big data, Artificial Intelligence and the increase of efficiency in traditional industries are a strong focus point of Cathay Innovation’s investments. Cathay Innovation’s team will support Tuboshi by helping its management to continuously improve Tuboshi’s technology, products and business model.”