China data service provider Jusfoun to pursue IPO in 2016
Chinese big data services provider Jusfoun valuation expected to reach up to 15 billion yuan
Chinese big data services provider Jusfoun plans to pursue its initial public offering on the mainland equities market in July next year, with its valuation expected to reach up to 15 billion yuan.
“We were approached by more than 70 interested investors,” said Wang Sanshou, founder and chief executive of Jusfoun.
The current business model is that Jusfoun and local governments form joint ventures and the local government takes the controlling share. Jusfoun processes and commercialises raw data from the governments. “We do not collect the raw data. The data will remain as the government’s possession,” Wang said.
“We are surprised by how quick the government responded to the technology changes,” Wang said. “There are so many fields in internet. We never thought big data would become a focus.”
The company started out by providing free service for local governments. In return, the governments give Jusfoun access to their data collection. “After years of cooperation, it is natural to sign deals with us,” Wang said.
Beijing had written big data into 13th five-year-plan, which was approved by the Chinese Communist Party in early November. The plan includes a series of social and economic initiatives that will guide the development of the country from 2016 to 2021.
Jusfoun is putting sensors in factories and warehouses in industrial cities such as Qinhuangdao and Tangshan in northern China to monitor the temperature, dust level and air components. Based on the data, it can calculate the risk of an explosion using mathematic models.
This is one of the many applications of big data. As China has written big data into its economic development plan, companies like Jusfoun are attracting interest from government as well as capital.
The company completed aninvestment round of 700 million yuan on November 21. Some of the top investors are Chinese Construction Bank International, the investment banking arm of the bank, as well as Chinese investment company Boxin Capital.
Wang said their first round of investment in 2013 attracted 300 million yuan from local investors. He added that “many local government haven’t realised the value of their data and the central government’s grand vision made more and more governments interested.”