Guazi, a Chinese consumer-to-consumer (C2C) used car trading platform, has secured over $400 million in series B financing round led by its existing investor Sequoia Capital, according to the company’s statement on Friday.
Participants in this round included other existing investors Matrix Partners China, BRV Aster Fund and Hike Capital. Meanwhile, new investors in the round include H Capital, New Trend Equity Investment Fund Partnership, Beijing Jingxi Guigu Innovation Investment and Dragoneer Investment Group.
Guazi was founded in 2015 by Yang Haoyong, founder of Chinese online classified ads portal Ganji.com. It directly links individual car sellers and buyers in China’s rapidly growing used car market.
The company reportedly achieved the unicorn tage (with the valuation of $1 billion) after it raised a $250 million series A round from Matrix Partners China and BlueRun Ventures in September last year.
It currently operates in over 200 cities in China with total transaction value of over RMB100 million ($14 million) in March this year. It also claims that its application was installed on 4.16 million devices.
“Currently, the used-car online transaction market is hyper competitive, which means companies must establish a high entry barrier as fast as they can,” said David Zhang, founding managing partner at Matrix. “Guazi is growing at an impressive speed, as it actively invests in technology and is building up its team rapidly. We are very optimistic about Guazi’s potential in the future.”
Guazi is the minority-owned by 58.com Inc, China’s largest online marketplace serving local merchants and consumers.
In January, Sequoia Capital also led a $29-million series B round in Nanjing-based used-cars trading platform Che300.