Kingsoft Cloud Secures Additional $220 Million in Series D Funding, Valuation Reaches $2.12 Billion

1Month4On [a certain] day, Kingsoft Cloud, under Lei Jun’s umbrella, announced that followingSeries D3After raising hundreds of millions of dollars in financing, it has again received2.2hundred million U.S. dollars in financing; thus, Kingsoft CloudSeries D financing has cumulatively reached 5.2hundred million US dollars, setting a new record for financing in China's cloud industry. Kingsoft Cloud's post-money valuation reached21.2billion, once again setting a new record for the highest valuation of an independent cloud service provider in China.

Announcements from Kingsoft Group indicate that Kingsoft Cloud issued a total of approximately259.3 million shares of Series D preferred stock.Among them,Forebright (GY Guangyuan Investors), Liyue InvestorsandShunweiAs the lead investor, the investors respectively at$50 million, 5,000WanUS Dollar、1000$10,000Subscription58,922,728 shares, 58,922,728 shares, and 11,784,546 shares of Series D preferred stock. Kingsoft Software, as a co-investor, subscribed for 129,630,002 shares of Series D preferred stock at $110 million. Upon completion of the financing,On a fully diluted basis, Kingsoft Corporation、Liyue Investors, LivelihoodInvestors、Forebright (GY Guangyuan Investors) andShunweiInvestmentCapitalPatientThe respective shareholding ratios in Kingsoft Cloud are approximately51.73%, 4.72%, 4.72%, 2.36%, and 0.47%。

Leveraging its robust technological and service capabilities, as well as its position among the top three public cloud providers in China, Kingsoft Cloud has continued to garner significant attention and recognition from the capital markets. This financing round follows last year’sAnnounced on December 12 that it had raised $300 millionYuanPost-financing,Kingsoft Cloud inSecured another massive round of financing within a month.

IDC data shows that the compound annual growth rate (CAGR) of China’s public cloud services market will reach 43.2% from 2016 to 2021, significantly higher than the 19.9% in the U.S. market. In 2017, high-quality cloud computing resources accelerated their concentration among top players, and China’s cloud computing industry is currently undergoing rapid consolidation.

Kingsoft CloudCEOWang Yulin stated that customers in China’s cloud computing market are increasingly shifting toward leading players. RecentlyOver three years, Kingsoft Cloud maintained a compound annual growth rate (CAGR) of over 100%, far exceeding the market average and establishing itself as a leader in China’s public cloud market.

This timeSeries D Funding Successfully SecuredThis fully demonstrates the recognition and confidence of capital in China’s public cloud market and Kingsoft Cloud, which will drive Kingsoft Cloud’s sustained high-speed growth and enable it to capture a leading position in China’s public cloud sector.The target of capturing 30% market share in the IaaS sector provides strong momentum.

Following this round of financing, Kingsoft Cloud will intensify its research and development efforts in the field of artificial intelligence.Consolidate and expand our leading position in internet sectors such as video and gaming, while empowering the upgrading of traditional industries through technology. We will increase investment in capital and talent to comprehensively deploy across more vertical industries, including government services, finance, manufacturing, and healthcare. Meanwhile, Kingsoft Cloud will further accelerate its overseas expansion, actively exploring markets in Europe, North America, and Southeast Asia, to deliver high-quality, global cloud services to customers.