Taxi-focused media company raises RMB100m

Touchmedia will use the RMB100m Series C funding to boost its existing operations as well as to expand across China. Qiming Venture, Mustang Ventures and TLC Capital were among the returning investors.

CDIB Capital has led TLC Capital, Qiming Venture Partners, Mustang Ventures and Micky Fung, founder and chief executive officer of Touchmedia, to invest more than RMB100 million ($15 million; €11 million) in Touchmedia, a touchscreen media technology company.

CDIB Capital is an affiliate of Taiwan-based China Development Financial Holdings. TLC Capital is an investment firm while Qiming Ventures and Mustang Ventures are China-focused venture capital firms.

Expanding in China

Founded in 2003, Touchmedia develops interactive media for inside taxis and is the largest such company in China. It currently has more than 100,000 taxis under contract and operates in Beijing, Shanghai, Guangzhou and Shenzhen.

The capital will be used to fund Touchmedia’s expansion plans in existing and new cities, Fund said in a statement. The company’s system would be launched in a number of cities in the next 12 months and international launches are being considered, he added.

CDIB’s investment gives Adam Bornstein, vice president of CDIB Capital, a seat on the company’s board of directors.

Qiming Ventures participated in Touchmedia’s first funding round in 2006. The company’s second funding round in March 2008 was led by TLC Capital and included Qiming Venture Partners and Mustang Ventures.

Qiming Venture Partners raised its $320 million fund in August 2008. The fund primarily backs early stage companies, although it selectively makes growth and expansion capital investments.

CDIB Capital, TLC Capital, Qiming Venture Partners, Mustang Venture and Touchmedia could not be reached for comment at press time.