China chauffeured car service Ucar raises $668m

According to a filing, Shanghai Lianyin Venture Capital, an investment arm of China’s interbank network UnionPay, invested RMB2.4 billion, while AXA SPDB Asset Management contributed RMB999 million. A further RMB699 million came from Shanghai Goldseed Capital, and RMB500 million from CICC Qiyuan National Emerging Industry Venture Capital Fund, a government-backed fund-of-funds launched by China International Capital Corporation (CICC).  

Ucar, which operates under the Shenzhou Private Car brand, has a longstanding relationship with China Auto Rental (CAR). It entered into a co-branding arrangement with the Hong Kong-listed company early last year, enabling it to rent CAR's vehicles under long-term contracts. Ucar provides car rental services through its mobile app and employs professional drivers to operate the leased vehicles.

In July 2015, Ucar raised a $250 million Series A round from Warburg Pincus, Legend Capital and CAR. Three months later, the investor group provided an additional $550 million. In April last year, the company raised RMB3.68 billion from domestic investors including Yunfeng Capital ahead of a listing on the NEEQ, also known as the New Third Board, which was approved in last July. In October, Ucar announced that it plan to raise up to RMB10 billion for the development of its car dealing business.

Ucar recorded revenues of RMB1.7 billion in 2015, up from RMB460,000 in 2014. Its net loss widened to RMB3.7 billion in 2015 from $48.61 million in 2014. Last year, Ucar hired David Li, former managing director and head of China at Warburg Pincus, as its vice chairman.

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• Topics
• Greater China
• Expansion
• Consumer
• PIPEs
• China
• CICC
• Transportation
• TMT
• Venture