Yixin Capital Limited, an online automotive transaction platform, has closed an RMB4 billion ($579.4 million) funding round from a group of strategic investors including Tencent, Bitauto, China Orient Asset Management, AMC International, and SF Express founder Wei Wang.
With this round, Yixin has raised approximately RMB10 billion ($1.4 billion) of investments from investors kincluding Tencent, JD.com, Baidu, and Bitauto.
The latest transactions are expected to close by the end of May 2017, subject to customary closing conditions. Bitauto will subsequently hold over 48 per cent of Yixin’s outstanding share capital. In addition, Yixin Capital will change its name to Yixin Group to better reflect the nature of its business.
The firm aims to develop a consumer-centric automotive transaction platform which connects consumers with a partner network that includes automakers, auto dealers, financing and insurance partners, as well as aftermarket service providers.
The latest investment comes at a time when car sales in China have lost momentum, with manufacturers and dealers seeing their share prices drop. China’s vehicle inventory alert index is surging, with discounts on cars suggesting excessive stock that dealers are trying to clear. In March, Beijing considering relaxing rules on the sale of used cars to spur demand for new vehicles.
Andy Zhang, founder and chief executive officer of Yixin, commented: “As a leading online automotive transaction platform in China, Yixin is dedicated to creating superior new and used car purchasing experience for consumers in China, as well as providing superior transaction-related services to our partners such as automakers, auto dealers, financing and insurance partners, and aftermarket service providers.”
He adds, “We are delighted to announce the new investments from our existing and new strategic investors. We are confident that with the strong support from our shareholders and partners, Yixin is well positioned for long-term success.”