Chinese rental property provider Ziroom is reportedly completing a $500 million series B funding round, led by existing investor New York-based General Atlantic, according to a report in Mingtiandi.com. The funding — along with a similarly sized round for rival Danke Apartment in March — is a promising sign for China’s co-living rental market, which has been hit by a series of scandals (including several related to Ziroom).

The latest round was led by venture firm General Pacific, along with mainland tech giant Tencent, Sequoia Capital China, and Shenzhen-based Tiantu Capital. It values the home rental firm at $4.5 billion. The company’s series A round in January 2018 valued it at $3 billion U.S.

Founded in 2011, Beijing-based rental Ziroom currently operates in nine major cities in China, serving 450,000 landlords and three million tenants, according to its website. According to Mingtiandi, Ziroom currently has 850,000 rental units under its management — well below the goal of one million it had set to reach by the end of 2018.

Ziroom was spun off from Lianjia (AKA, HomeLink) in 2016. Lianjia is one of China’s largest rental platforms, claiming to own more than 50 percent of the real estate rental market in Beijing and Chengdu. It now operates in 25 cities in China.

Last December, a class-action lawsuit was brought against the company by tenants who alleged that their apartments had elevated levels of formaldehyde. In September 2018, a couple in Beijing discovered a camera hidden in a power socket of their Ziroom rental home.

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