Pagoda leads $100m Series C in China's Tiantian Paiche

According to a statement, the round included participation from several additional investors. The capital will be used to expand market share through enhancement of operations as well as improvement of customer experience.

As a result of the deal, the company, which aims to connect individual buyers with deals through an online-to-offline platform, expects to benefit from a strengthened business network and a more innovative product pipeline.

"Tiantian Paiche has quickly become a leading player in the sector as China's economic restructuring and rising middle class have opened tremendous opportunities for China's exponentially growing used car market," said James Yang, managing partner and chairman of Pagoda.

Pagoda specializes in growth capital and buyouts across China's TMT, healthcare, education and consumer sectors. It counts Australia's Queensland Investment Corporation and large European pension funds as backers, and has cross-border capabilities in Australia, Germany and the US. Earlier this year, it participated in the $850 million acquisition of Finland-based mobile game developer Supercell led by CITIC Capital.

The growth of China's used car industry is being driven by rapidly developing consumer and technology sectors and supporting government initiatives, such as a policy announced earlier this year that allows car sales across provinces. Recent private equity activity in this space includes a $250 million Series A round for consumer-to-consumer car trading platform Guazi.

Earlier this month, Alibaba Group's financial services affiliate Ant Financial and car rental services provider Ucar led a $100 million Series C round for Souche, a trading platform that claims to do business with more than 80% of the second-hand car dealers in China.

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• Topics
• Greater China
• Consumer
• Technology
• Expansion
• China
• automobiles
• TMT