Chinese public cloud company Inspur Cloud has raised RMB 600 million (around $87 million) in a Series B, valuing the company at $1.1 billion, Chinese media outlet PEdaily.cn reported.
The cloud provider is a joint venture between subsidiaries under Shandong-headquartered Inspur Group, the world’s third-largest server maker and the largest in China, and provides cloud solutions for government agencies and enterprises. It is said to be preparing its initial public offering (IPO).
The company was not immediately available for comment when contacted by TechNode on Monday.
Why it matters: The fresh injection of funds come as cloud computing emerges as one of the core developments that are increasingly important to the government. China has been trying to beef up its cloud computing technology as the tech race with the US heats up.
Details: The company said that the funds will be put into research and development, constructing basic infrastructure for cloud centers, as well as branding.
- Investors include institutions owned by the State Council and managed by the Ministry of Finance, regional investment institutions owned by the Shanghai municipal government, and institutions associated with China Construction Bank and China Minsheng Bank, among others.
Context: Inspur Cloud is the largest service provider in China’s government cloud market and its market share is still growing. According to the company, it provides cloud solutions to more than 10,000 government departments.
- The company has formed ties with US tech companies which are largely restricted due to regulations. The company launched a joint venture with Cisco in 2016 as part of its cloud push, a major step for Cisco’s development strategy in China. Last year, Google was reportedly in talks with Inspur and Chinese internet giant Tencent to offer cloud services in China.
- Cloud computing is part of the country’s Made in China 2025 initiative that aims to upgrade the manufacturing sector through cutting edge technology. The country’s spending on public and private cloud development is increasing at a rate double that of the global market.
- The company offers a wide range of cloud services including infrastructure as a service (IaaS), platform as a service (PaaS), Software as a Service (SaaS), and other government and enterprise-facing solutions. For example, its industrial internet platform enables businesses to digitalize their supply chain, manufacturing, and production processes.
- There are four publicly listed companies under Inspur Group in areas including cloud data centers, cloud services and big data, smart city, and smart enterprises.