Qulian Technology, a China-based blockchain platform developer, has announced the completion of a 1.5 billion Chinese yuan ($234 million) Series B funding round.
The amount makes the investment one of the largest traditional funding rounds in the blockchain space to date, though, according to CoinDesk's Venture Capital Tracker, Robinhood's $363 million round announced last month is still way out in front.
The document indicated that Xinhu Zhongbao intended to invest 1.23 billion CNY ($192 million) in Qulian through a combination of a $17 million capital contribution transfer and a $175 million new equity issuance. The deal resulted in the investor holding 49 percent of Qulian's shares.
Founded in 2016, Qulian sets out to develop enterprise-grade solutions based on its hyperchain blockchain platform. Based on Xinhu Zhongbao's disclosure, the firm recorded revenue of $281,000 and a net loss of $2.34 million in 2017, while the firm was valued at $234 million.
This is the second time that Xinhu Zhongbao has shown its support for Qulian, having already purchased a small amount of the firm's shares in April 2018, at which point the investor valued Qulian at $78 million.
The three-fold increase in valuation over two months has predictably drawn scrutiny from financial regulators in China. In a letter of inquiry published on May 27, the Shanghai Stock Exchange required the lead investor to justify the rapid change in Qulian's valuation.
At press time, Qulian could not be reached by CoinDesk for comment.
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