PAG is one of the largest private equity funds in Asia, with approximately $16 billion in management funds and industrial investment business in Greater China, Korea, Japan, Southeast Asia and Australia.
According to a statement by the company, the funding comes close on the heels of Chezhibao strategic acquisition of Shanghai-based second-hand car trading platform Youyiche.
Once the transaction is completed, the two sides will continue to expand the Chezhibao brand in the second-hand car trading business and will help to enhance the profitability of the company. Chezhibao founder Huang Le will serve as chairman and CEO of the merged entity while Shi Wen will serve as president of the company.
Founded in 2012, Chezhibao connects car owners, dealers and buyers online to facilitate used-car transactions. The new entity aims to set up a national network and expand to over 50 cities in 2017, the company said in its statement.
At present, Chezhibao has offices in 15 cities including Beijing, Shanghai, Shenzhen and Chongqing, and it plans to expand to 100 outlets in 2019.
In 2015, he company announced the completion of a 300 million RMB ($50 million) Series B financing round led by Jiuding Capital and Addor Capital and followed by Gobi Partners, Nanjing Venture Capital and Bank of Nanjing.
The online used car trading business has caught the investors’ fancy with a number of financing deals coming in recently.
In January, another Chinese online used-car company Uxin Group raised $500 million funding co-led by global private equity firm TPG, along with Chinese multi-family office Jeneration Capital and value investment firm China Vision Capital. Other existing and new investors who participated in the round include Warburg Pincus, Tiger Gobal Management, Hillhouse Capital, KKR & Co LP and Huasheng Capital.
Prior to that in November last year, Used car online auction platform Tiantianpaiche successfully raised $100 million in a Series C funding round led Chinese growth capital investment firm Pagoda Investment, Tencent Holdings Ltd, Bitauto Holdings Ltd, SB China Capital (SBCVC), and SIG Asia Investments.