Jack Ma's Yunfeng Capital among Xiaozhu backers

Chinese house-sharing platform Xiaozhu Inc said on Wednesday that it has raised $120 million in its latest financing round, boosting its financial muscle to better compete with local rivals and US giant Airbnb for more market share.

The current round of funding is led by Yunfeng Capital, a private equity firm co-founded by Alibaba Group Holding Ltd chairman Jack Ma. Existing investors, including Joy Capital, Morningside Ventures and Capital Today, also participated in the funding with TH Capital being the exclusive financial advisor.

House-sharing, a concept hugely popular in western countries, has not been an easy sector for overseas firms in China.