EqualOcean has learned that OpenGMV, an innovative investment and financial technology platform, recently announced the successful completion of CNY tens of million in Pre-A round of funding. The investors include industrial investment institutions, renowned universities, and individual investors.
Established in 2021, OpenGMV is headquartered in Shenzhen, China, with offices in Shenzhen and Hong Kong. The company's core team has a background in Tencent（腾讯） and provides investment to e-commerce startups through a profit-sharing model. Its goal is to provide funding and other financial services support to small and medium-sized businesses in the e-commerce sector.
The founders of OpenGMV recognized that small and medium-sized e-commerce businesses require flexible and rapid financial support to cover operational expenses such as advertising, live streaming operations, and supply chain procurement. These small businesses, which rely on traffic platforms for their e-commerce operations, have high growth potential. However, due to the lack of robust financial systems and presentable financial statements, they find it challenging to secure funding from traditional financial institutions or venture capital.
To address this, OpenGMV offers small, fast financial services to SMEs through its businesses such as Xing Dian Tong（星店通）, Xing Yun Zhi Rong（星云智融）, and Xing Yun Yin Qing（星云引擎）.
OpenGMV has built an information service platform with proprietary algorithms and risk control systems. It makes investment decisions based on various operating data provided by businesses. Using the Revenue-Based Financing (RBF) model, which is neither equity nor debt, OpenGMV invests in merchants' stores and helps clients run their businesses healthily through investment algorithms.
In terms of investment methods, Xing Dian Tong, a subsidiary of OpenGMV, signs a "Revenue Sharing Agreement" with merchant stores. After a period of cooperation and guidance, it provides a certain percentage of non-dilutive capital investment and receives a predefined share of daily revenue from e-commerce stores. This investment approach does not take ownership of the merchant's shares, does not require merchants to assume debt, and shares the operational risk of e-commerce stores with them.
As of now, OpenGMV's business covers major domestic e-commerce platforms such as Douyin（抖音）, Kuaishou（快手）, WeChat Channels（微信视频号）, Pinduoduo（拼多多）, Taobao（淘宝）, and has expanded to cross-border e-commerce platforms such as TikTok and TEMU. OpenGMV has also partnered with top domestic banks, Forbes China, the University of Hong Kong, and other institutions. It has launched operations in Hong Kong, establishing dual headquarters in Shenzhen Qianhai and Hong Kong.
In recent years, China's cross-border e-commerce import and export scale has continued to grow rapidly, becoming a new engine for foreign trade development and an important investment target for financial technology platforms. In 2022, the scale of China's cross-border e-commerce market reached CNY 15.7 trillion, attracting increasing attention from financial companies. They provide funding and comprehensive support services to small and medium-sized e-commerce businesses, including HomeCredit（捷信）, FINTELL（融慧金科）, Ant Financial（蚂蚁金服）, JD Digits（京东数科）, FINV（信也科技）, and others.
The proceeds from this round of financing will be used for product development, talent recruitment, and brand promotion at OpenGMV.