LeEco has announced a $600 million in funding from Chinese institutional investors, seeking a sustainable number of emergent businesses.

According to the company’s statement, LeEco’s billionaire founder Jia Yueting has signed the financing agreements at the company’s Beijing headquarters, according to Forbes. Present in the signing agreement are investors including Hong Kong-listed furniture company Man Wah Holdings, Jiangsu-based apparel maker Heilan Group, and Shandong-based pharmaceutical firm Luye Group. 

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The new funds will be allocated to the company’s car business, the LeEco See Plan, and LeEco Global Holdings. LeEco’s latest move is attributed to the recent problem of the company regarding the cash crunch because of expensive ventures such as the car division as well as televisions and sports media.

“LeEco has secured USD 600 million of funding from major Chinese institutional investors today. The first half of the funding will be transferred to LeEco within this November and will support LeEco Global and LeEco's electric vehicle business,” LeEco said in a statement.

In addition, the Netflix of China is currently undergoing a series of strategic and organizational upgrades with a focus on sustainable growth and acquisition of high-value users. LeEco has also replaced the president of LeEco Asia-Pacific region Tin Mok with Anthony Gao, South China Morning Post reported.

The new LeEco Asia-Pacific region president will be the Chief Executive Officer of LeEco Hong Kong region as well. Gao will run the operational management and be responsible for various business targets. He will report directly to Jia Yueting. 

Moreover, LeEco sent an internal memo to employees stating that the company will hold off on further expansion in Asia-Pacific.

TagsLeeco, APAC, LeEco $600M Funding, Netflix of China, LeTV, Cash Crunch LeEco, china