HONG KONG, Aug 12, 2024 – (ACN Newswire) — In recent years, the digital solutions market for Mainland Chinese enterprises has shown rapid growth.
According to Frost & Sullivan, the market size for digital solutions for Mainland Chinese enterprises has increased from RMB482.4 billion in 2019 to RMB775.1 billion in 2023, with a CAGR of 12.6%. It is expected to reach RMB1,302.8 billion by 2028. In this vast blue ocean market, high-quality companies that empower enterprises digitally will thrive in this favourable environment. Established in 2014, Quantgroup is one of the representative companies in this space.
Faced with unprecedented momentum in digital transformation, the capital market has maintained sharper insight and a long-term strategic vision.
Since its establishment, Quantgroup has provided scenario-based digital empowerment services for multiple industries based on its AI technology capabilities, helping them achieve in-depth digital integration in scenarios, technology, traffic, operations, goods, and services. Based on public information, from 2014 to 2020, Quantgroup has completed multiple rounds of financing, including Series A financing led by Fosun Kinzon, Gaorong Capital, and Huachuang Capital, and Series B financing led by Prophet Capital, Star VC, Oriental Fortune, Jiangmen, and Bihai Capital.
In November 2016, Quantgroup completed a RMB500 million Series C financing round, led by Sunshine Insurance, one of the seven major insurance groups in China, with follow-up investments from Fosun Group’s PE fund Fosun Capital, and Guoxin Hongsheng under Guoxin Securities. The favour and support from numerous well-known investment institutions not only serve as a strong testament to Quantgroup’s current strength but also reflect a firm belief in its growth potential.
Quantgroup’s influence in the industry is growing day by day. Since 2020, Quantgroup has been listed three times in a row on the Greatwall Strategy Consultant’s “China Potential Unicorn Enterprises” list. To achieve this honour, companies must not only have strict registration qualifications and reach a certain scale of financing but also meet rigorous valuation criteria. Greatwall Strategy Consultant has published these criteria, which include meeting one of the following conditions: achieving a post-investment valuation of US$100 million within five years of establishment (established after 2019) or achieving a post-investment valuation of US$500 million within 5 to 9 years of establishment (established from 2014 to 2018). As a company established in 2014, Quantgroup has managed to meet the US$500 million post-investment valuation criteria set by Greatwall Strategy Consultant within 5 to 9 years of establishment, providing strong evidence of its rapid development and strong growth potential.
Quantgroup’s continued focus on the digital solutions market and business expansion demonstrates a solid operational status and growth potential. According to the website of the Hong Kong Stock Exchange, from 2021 to 2023, the prospectus indicates that Quantgroup’s revenues for 2021, 2022, and 2023 were RMB351 million, RMB475 million, and RMB530 million respectively, with gross profits of RMB267 million, RMB313 million, and RMB368 million. Based on the 2023 revenue, Quantgroup ranked seventh among digital solution providers in China. Additionally, by the end of 2023,