Smart 3C Leasing Platform WOAIZUJI Completes A Round of Financing Worth Tens of Millions of Yuan
The smart 3C products leasing company, Shenzhen WOAIZUJI Technology Co., Ltd, announced that it had completed its Series A funding round worth tens of millions of yuan, led by Jinhua Ruichi Investment Management Co., Ltd. WOAIZUJI will use the funds obtained to upgrade the technology of its original systems, transform its platform system, and expand operation investment.
WOAIZUJI has raised a total of 13 million yuan in its Angel Round and Pre-A Round, respectively from D.Phone, a mobile phone and accessory retailer, and Z&H Investment. The most recent funding was raised on Aug. 1, 2019, when Z&H Investment invested 10 million yuan in the startup company.
WOAIZUJI was established in 2016, based in Shenzhen, and aims to provide consumers with full-process services such as multi-category smart product rentals, purchases, repairs, and recycling. Most of its business started with renting iPhones and other brands of mobile phones. Hu Guangtie, the founder of WOAIZUJI, has nearly 20 years of experience in the mobile phone industry. He was once the direct supply agent for Nokia, Motorola, and Apple; he also independently developed mobile phone brands like Ganglitong.
WOAIZUJI is a credit-based leasing platform, which means that qualified consumers do not need to make a deposit in order to rent products. Consumers can place orders on several online platforms, for instance, the WOAIZUJI mobile app, its official WeChat platform, its mini program on Alipay, JD Finance, and Tencent Financial Technology. According to Sesame Credit on Alipay, credit scores on JD Finance or WeChat Payment Points, platforms would automatically audit users’ credit status to decide their eligibility for the deposit-free policy. After the examination, the platform will deliver the rental products to users, then the users will pay for the product in installments. The total cost of one mobile phone is usually 50% of its market price. After the lease expires, users can choose to return, continue to rent, or fully purchase the device.
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Customers born after the 1980s constitute the majority of the mobile phone rental industry. Gen Z has also participated more actively in recent years. Since the technological development speed of mobile phones is getting faster and faster, users want to keep themselves updated with the newest technology without squandering money by frequently buying new devices. As such, more and more people are turning to economically viable rental services.
“80% of users rent leases for one year,” Hu Guangtie said. “At present, our platform rents out more than 200,000 mobile phones a year. Based on the average annual rent of 3,000 yuan, our annual revenue can reach 600 million yuan.”