LeCloud, the cloud computing and data processing arm of Chinese internet giant LeEco (formerly known as LeTV), announced on Thursday that they received a 1 billion yuan (US$150M) of series A led by Chongqing Industrial Investment Fund, a 80 billion yuan state-owned investment fund by the Chongqing government.
LeEco’s stake in the cloud computing unit will decrease from 60% to 50%, but the parent will retain a majority stake of LeCloud. The new investor will hold a 16.67% stake in the company.
The funding is earmarked for product development, service optimization, recruitment, business development and marketing. The company also disclosed that they are going to issue stock incentive plans for the LeCloud team.
As part of LeEco’s global expansion plan, LeCloud is going to improve its cloud computing services for video, enterprises business, video sharing, virtual reality and automatic cloud platforms.
According to official data from the company, LeCloud now covers 650 CDN network nodes across 60 countries and regions, providing service for over 100,000 enterprise users and billions of individual users.
The tie-up also brings about a deeper cooperation between LeEco and the Chongqing municipality, China’s cloud computing capital. The internet giant is planning to promote research and development, production, distribution, operation, incubation and management services for cloud computing and big data in Chongqing. The local government will provide support in cooperative operations and broadband resources.
Image credit: LeEco