A China-based blockchain platform developer, Qulian Technology, claims it raises $234 million (1.5 billion Chinese yuan) in a funding round, reported Coindesk on June 4.
It represents one of the largest amounts of money raised in traditional funding rounds in the blockchain space. It is not far behind Robinhood, which raised $363 million last month.
The announcement comes a week after the lead investor behind the project, Xinhu Zhongbao, a Chinese real estate and finance firm, reveals its desire to invest in the blockchain platform developer in a document shared with the Shanghai Stock Exchange on May 27.
The filing also stated that Xinhu Zhongbao planned to invest 1.23 billion CNY ($192 million) in Qulian with two transactions, a $17 million capital contribution transfer, and a $175 million new equity issuance. The firm will from now be the owner of 49% of Qulian Technology.
The firm had already shown its support to Qulian Technology by buying a small amount of the firm’s shares in April 2018, which investors valued the company at the time at $78 million.
The valuation of the company has tripled in only two months, which made the Chinese financial regulators doubt. The Shanghai Stock Exchange asked the lead investor to explain the rapid change in Qulian’s valuation.
Zhongbao Xinhu said,
“This is a business judgement made by the company and other co-investors based on a comprehensive evaluation of Qulian. There is a risk of a mismatch in (Qulian’s) income and valuation.”