Tuhu, a Shanghai-based car maintenance B2C platform operated by Lantu Information Technology, has raked in $450 million in a Series E funding round backed by major investors Tencent, Carlyle Group, and Sequoia Capital.
The latest funding round brings Tuhu’s total funding amount to date to $574.8 million. Tuhu was founded in 2011.
CCB International and CICC Qiyuan also joined in the round, with existing investors Qiming Venture Capital, Joy Capital, Grand Flight Investment, Goldman Sachs, CICC Alpha, and Welkin Capital also chipping in, according to a China Money Network report.
Tuhu will reportedly use the proceeds of this round to improve user experience, accelerate the standardization, and specialization of technical service processes, strengthen the traceable genuine supply process, and deepen the layout of domestic service systems.
It will also cooperate with Tencent, one of the lead investors in the latest funding round, in smart retail and supply chain finance, the report added.
Tuhu, which claims to have over 13,000 offline cooperative stores in 31 provinces and 405 cities in China, provides automobile after-sales products and services through its website, mobile app, call centre and major third-party e-commerce platforms.
The latest funding round followed a RMB100 million ($14.6 million) Series D fundraising in November 2016 and the $100-million Series C round in August 2015, led by Joy Capital.
According to a report released by global consultancy giant Accenture, the automotive aftersales market in China is expected to see high growth and reach Rmb1 trillion ($154 billion) by 2020.
Its contribution to the total profits of the automobile dealerships too will keep rising, with aftersales services accounting for about 80 per cent of the overall profits of automotive dealerships, the Accenture report said.
Total automotive sales in China in 2015 have been estimated at 24 million units. With rising vehicle service life, Accenture said the aftersales market is playing an increasingly prominent role in the automobile industry.