The recent collapse of several Chinese housekeeping service platforms has left hundreds of thousands of unpaid workers, mostly women in poor rural areas, as owners fled with money from investors and customers.
Guanjiabang, an industry leader that has raised multiple rounds of venture capital funding, ran into operational problems in October 2019 as its rapid expansion overwhelmed founder Fu Yansheng’s management capabilities. Although its commercial registration has not been revoked and no bankruptcy filing or liquidation records could be found, the company is currently listed as in “abnormal operation”. Tiantu Capital withdrew from involvement and canceled its 50 million yuan ($7 million) investment as a failed project, Caixin learned.
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