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.