Tencent extends “double-hundred plan” to cover legal services platform, Kuaifawu
One-stop legal services platform Kauifawu has announced that the company was selected as one company for Tencent’s double-hundred plan (双百计划).
Under the agreement, Kuaifawu has exchanged shares for traffic. Tencent is giving the company credit to use on channels owned by Tencent, including Guangdiantong, WeChat, and other content channels. The credit reflects the current valuation of the company; the total valuation, however, was not disclosed.
Kuaifawu is China’s one-stop legal services platform for small and medium enterprises. It helps companies handle company registration, tax, accounting, trademark, patents, social security, funds, contract, and finding qualified legal advisers and choose the rated legal advisers on the company website to handle the legal service for them. There are over 500 kinds of online legal services that the Beijing-based company provides.
“Tencent has its ads platform Guangdiantong, and we’ll be able to benefit from their traffic,” Roy Huang, co-founder of Kuaifawu told TechNode. “Yes, we gave a small portion of our shares to Tencent.”
Under the “double hundred plans”, which was announced in 2014, Tencent “invests” its traffic to startups to fully integrate Tencent’s online and offline resources and create closer partnerships. Tencent will direct 10 billion user visits to 100 startups that are valued RMB 100 million or more. Live streaming app Inke, grocery delivery service Missfresh, fitness recording app 51Yund, education app Afanti are all companies that Tencent has invested under “double hundred plans”.
Through this cooperation, the two companies will work together to better complement each other. Kuaifawu will benefit from Tencent’s brand and traffic to achieve faster growth, while Tencent now gets access to a professional legal service platform for its growing startups.
Established in April 2014, Kuaifawu raised US$ millions of series A in August of that same year. In September 2015 it raised US$ 10 million USD in their series B round.
According to Kuaifawu, the company currently has 150,000 registered enterprise customers, nearly 50,000 paying enterprises, and over 5000 cooperative service staff, and their service runs across more than 10 cities in China.
A growing enterprise market in China
It looks like the China government’s Internet+ plan has worked out for 2016, at least in growing the number of startups in China. According to the 2016 government work report, integration of internet in traditional industries has accelerated coupled with the rapid growth of new industries. New registered enterprises increased 21.6% throughout the year, an average of 12,000 new companies registered daily.
Entrepreneurship has become a social wave in China, and the enterprise service market has huge growth potential in China. It is estimated that the enterprise service market size is as big as RMB 100 billion RMB, and the market is still growing rapidly.