Gobi-backed Chinese used car auction platform Chezhibao raises $125m

Traffic travels along the Second Ring Road in Beijing, China, on Wednesday, Dec. 2, 2015. Photographer: Qilai Shen/Bloomberg

Fresh from raising $100 million in its Series C in March, Chinese used-car online auction startup Chezhibao Information Technology announced that it has closed its Series D funding round with a total of RMB 800 million ($125 million) in investments.

The company, which operates the business-to-consumer car trading platform Chezhibao.com, said the latest round was led by private equity firm Green Harbor Investment and backed by Pacific Alliance Group, Ador Equity Investment Fund Management, and Gobi Investment Management.

Founded in 2012, Chezhibao connects car owners, dealers and buyers online to facilitate used-car transactions. It 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.

On its official WeChat account, Chezhibao CEO Huang Lee said the company aims to quadruple its transaction volumes and revenues this year. The company will also set up a logistics system in cities where restrictions on moving second-hand cars have been lifted.

The Series C financing in March was completed about three years after Chezhibao closed its Series B round that raised RMB 300 million ($50 million) led by Jiuding Capital and Addor Capital, and joined by Gobi Partners, Nanjing Venture Capital and Bank of Nanjing.

China is the world’s second-largest automotive market as measured by registered vehicles and is forecasted to become the largest automotive market by 2023, according to global research firm iResearch.

As of the end of 2017, there were approximately 185 million registered vehicles in the country, compared with 275 million in the US. Total used car transaction volume in China reached 12.4 million in 2017, with the ratio of the country’s used car sales to new car sales by volume at 0.5, significantly lower than 2.4 per cent in the United States.

Total used car transaction volume in China reached 12.4 million in 2017, with the ratio of the country’s used car sales to new car sales by volume at 0.5, significantly lower than 2.4 per cent in the United States.

In May, Chinese used car trading platform Uxin Limited filed for an IPO in the US, targeting to raise up to $500 million to boost service capabilities and fund potential investments and acquisitions.

Goldman Sachs was reported to be leading a $300-million funding round for another second-hand car trading platform, Renrenche. Renrenche is a classified site that allows car owners to sell directly to other consumers.

Also Read:

China: Used car trading platform Chezhibao raises $100m led by PE firm PAG

Goldman Sachs to lead $300m round for Chinese used car platform Renrenche

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.