Micro Connect Valuation, Funding & Investors

Micro Connect is valued at $1.7B as of August 2023.

Last Micro Connect valuation

$1.7B

Series C · Aug 2023

Last Micro Connect funding round

$458M

Series C · Aug 2023

Cumulative funding Micro Connect raised

$578M

across 3 funding rounds

Key investors in Micro Connect

  • HSG
  • Lenovo Capital and Incubator Group (LCIG)
  • Vectr Ventures
  • Dara Holdings
  • Horizons Ventures
  • Baillie Gifford

Micro Connect Overview

About Micro Connect

Micro Connect is a cross-border investment platform based in Shanghai connecting institutional investors from Europe and the US to microenterprises in China. It facilitates debt and equity funding for SMEs in agriculture, retail, and green energy via digital marketplace infrastructure and compliance tools.


Founded

2021

HQ

Hong KongHong Kong

Status

Privately held

Customer focus

B2B

Revenue model

Commission, Subscription

Valuation

$1.7B (Aug 2023)

Micro Connect Valuation

Micro Connect is currently valued at $1.7B, based on its Series C in August 2023.

The $458M round included Baillie Gifford, Dara Holdings, Lenovo Capital and Incubator Group (LCIG), Vectr Ventures, Skyview Fund and 1 other investor.

Micro Connect valuation by funding round

Micro Connect valuation by funding round
DateStageValuation
Aug 2023Series C$1.7B

Micro Connect Funding History

Micro Connect has raised a total of $578M across 3 funding rounds.

Micro Connect's first fundraising round was a $50M Series A in June 2021. The most recent completed round was a $458M Series C in August 2023.

Micro Connect funding rounds

Micro Connect funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Aug 2023Series CBaillie Gifford; Dara Holdings; Lenovo Capital and Incubator Group (LCIG); Vectr Ventures; Skyview Fund; HSG$458M$1.7BMicro Connect is a Hong Kong-based fintech platform that connects China's micro and small businesses with global capital through a revenue-sharing investment model. The company operates the Micro Connect (Macao) Financial Assets Exchange (MCEX), a licensed global exchange for Daily Revenue Obligations (DROs), a proprietary asset class that gives investors direct exposure to the daily cash flows of millions of retail stores in China across Food & Beverage, Retail, Services, and Culture & Sports sectors. In August 2023, Micro Connect completed a Series C funding round raising US$458 million with participation from new and existing investors including Baillie Gifford (leading the round), Sequoia China, Lenovo Capital, Vectr Fintech, and Dara Holdings. The funding round valued the company at US$1.7 billion, making it Hong Kong's latest unicorn. The company is backed by billionaire Li Ka-shing and entrepreneur Adrian Cheng. Micro Connect was founded in 2021 and had previously raised US$70 million in a Series B round in March 2022. The Series C capital is intended to enhance MCEX's market structure and develop what the company aims to be the world's largest financial market for micro and small business investing. The MCEX was slated to launch in August 2023 following the funding announcement.
Mar 2022Series BDara Holdings; Keywise Capital; Chuang Capital; Lenovo Capital and Incubator Group (LCIG); ABC International; Horizons Ventures; Vectr Ventures; Adrian Cheng; Ausvic Capital; HSG; Archina Capital Fund$70M-Micro Connect is a market infrastructure and financial technology platform founded in early 2021 that connects global capital with China's grassroots economy, particularly micro and small businesses. It pioneered daily revenue contracts (DRCs) as a new asset class for direct exposure to these businesses and developed the Automated Repayment Mechanism (ARM) for secure, digital collection of investment returns with real-time transparency. The platform partners with chain stores, franchises, and SaaS companies to identify investment targets and leverages AI analytics on daily revenue data for optimized capital allocation. On March 31, 2022, Micro Connect completed a US$70 million oversubscribed Series B funding round led by Sequoia China (also Series A investor), with new participants including ABC International, Adrian Cheng, Ausvic Capital, Chuang’s Capital, Dara Holdings, Horizons Ventures, Keywise ARCHina Fund, Lenovo Capital, Vectr Fintech, and others. This brought total funds raised to US$120 million. By this time, the company had grown its team to nearly 100 people, completed its '100 Plan' with investments in 100 micro and small businesses, and aimed to scale to over 1,000 investments by end-2022 and 10,000 in 2023. Proceeds from the Series B were allocated to scaling the partnership network, enhancing onshore capital deployment, improving platform technology, and building market infrastructure such as funds, structured products, and an exchange platform to broaden global investor access to DRCs. The company planned to launch a data analytics platform for chain expansion strategies. Later developments included a Series C in August 2023 at a $1,700 million valuation and additional debt facilities, reaching total funding of $653 million over six rounds by 2024, but these postdate the queried Series B.
Jun 2021Series AHSG (lead)$50M-Micro Connect is a Hong Kong-based fintech founded in 2021 that operates a financial market platform connecting China's micro and small businesses with global capital via a revenue-sharing investment model, creating Daily Revenue Obligations (DROs) as a new asset class for exposure to daily cash flows of stores in sectors like food & beverage, retail, services, and culture & sports. The platform includes Micro Connect Macao Financial Assets Exchange (MCEX), a licensed global exchange for DROs launching in 2023 to enhance market structure for small business investing. By March 2022, after raising $70M in Series B from investors including Sequoia China, Horizons Ventures, Lenovo Capital, and others, it had invested in over 100 businesses across 15 sub-sectors in more than 10 Chinese provinces, aiming to scale to 1,000 by end-2022 and 10,000 in 2023. PM Insights reports $50.0M revenue as of 2021. A $50M Line of Credit - II round occurred on February 6, 2024, with HSBC Hong Kong listed among 11 total investors, though not matching the queried 2021 date or HSG as lead for a VC equity round.

Who has invested in Micro Connect?

13 investors have backed Micro Connect across its funding rounds, including HSG, Lenovo Capital and Incubator Group (LCIG), Vectr Ventures, Dara Holdings, Horizons Ventures and Baillie Gifford.

Lead investors include HSG.


Micro Connect Investors

Investors in Micro Connect by funding rounds participated
InvestorHQRoundsRoleFirst check
HSGHong KongHong Kong3LeadJun 2021
Dara HoldingsUnited StatesLos Angeles, CA2ParticipantMar 2022
Lenovo Capital and Incubator Group (LCIG)ChinaBeijing2ParticipantMar 2022
Vectr Ventures--2ParticipantMar 2022
Baillie GiffordUnited KingdomEdinburgh1ParticipantAug 2023
Keywise CapitalHong KongHong Kong1ParticipantMar 2022
Chuang CapitalChinaGuangdong1ParticipantMar 2022
ABC InternationalHong KongHong Kong1ParticipantMar 2022
Horizons VenturesHong KongHong Kong1ParticipantMar 2022
Skyview FundChinaBeijing1ParticipantAug 2023
Adrian ChengHong KongHong Kong1ParticipantMar 2022

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Investments by Micro Connect

Micro Connect has invested in 1 company to date.

Latest investment by Micro Connect was on July 3rd 2023. Micro Connect invested in Cyber Game Club in their $21M Undisclosed stage round.


Latest Investments by Micro Connect

Cyber Game Club
Description
-
HQ CountryChina
HQ City
-
Deal Date3 Jul 2023
RoundUndisclosed stage
Raised$21M
Investors-
Valuationundisclosed
EV/Revenue
EV/EBITDA

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Micro Connect Competitors

Micro Connect competitors include listed companies like Pagaya, Yusys Technologies, Porch Group and eFinance, and private ones like Caribou and Lumin Digital.

Public and private companies comparable to Micro Connect
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
CaribouUnited StatesDenver, COPrivate$11M-$1.1B100.0x
PagayaUnited StatesUnited StatesPublicly listed$1.3B$33M$1.7B1.0x
Yusys TechnologiesChinaChinaPublicly listed$540M$67M$1.7B2.4x
Lumin DigitalUnited StatesSan Francisco, CAPrivate--$1.6B-
Porch GroupUnited StatesUnited StatesPublicly listed$510M$79M$1.8B4.1x
eFinanceEgyptEgyptPublicly listed$130M$67M$1.6B-

Micro Connect Public Comps

Micro Connect is still privately-owned, but its public comps include Trinity Capital, Pagaya, Yusys Technologies, Sixth Street Specialty, Ellington Financial, eFinance, Porch Group, Hoist Finance, Aisino and Computer Age Management Services.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Trinity Capital$285M-11.2x9.2x--
Pagaya$1.3B$33M1.1x1.0x42.6x3.2x
Yusys Technologies$540M$67M2.6x2.4x21.2x19.6x
Sixth Street Specialty$410M-8.6x8.7x-8.7x
Ellington Financial$641M-31.4x43.2x--
eFinance$130M$67M11.8x-22.8x-
Porch Group$510M$79M4.0x4.1x25.7x18.4x
Hoist Finance$408M-7.0x5.3x--

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Common questions about Micro Connect

When was Micro Connect founded?Micro Connect was founded in 2021.
Where is Micro Connect headquartered?Micro Connect is headquartered in Hong Kong, Hong Kong.
Is Micro Connect publicly listed?No, Micro Connect is a private, VC-backed company.
What is Micro Connect's valuation?Micro Connect was last valued at $1.7B in its Series C in August 2023.
How much funding has Micro Connect raised?Micro Connect has raised $578M across 3 funding rounds.
What was Micro Connect's last funding round?Micro Connect's last funding round was a $458M Series C in August 2023.
Who are Micro Connect's investors?Micro Connect's investors include HSG, Dara Holdings, Lenovo Capital and Incubator Group (LCIG), Vectr Ventures, Baillie Gifford, Keywise Capital, Chuang Capital, ABC International, Horizons Ventures, Skyview Fund and 3 others.
Which companies are comparable to Micro Connect?Companies comparable to Micro Connect include Caribou, Pagaya, Yusys Technologies, Lumin Digital, Porch Group and eFinance.
How many companies has Micro Connect invested in?Micro Connect has invested in 1 company, including Cyber Game Club.
What was Micro Connect's last investment?In July 2023, Micro Connect invested in Cyber Game Club's $21M undisclosed-stage round.

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