PE-backed car auction player Mychebao receives $74m
Chinese second-hand car online auction platform Mychebao, which is backed by several PE investors including PAG Asia Capital, has raised another RMB500 million ($74 million) in an extended Series C round of funding.
It comes three months after the company raised $100 million in its initial Series C round led by PAG. Shenzhen-based Youjin Investment and government-backed The Belt & Road Fund led the latest tranche, followed by Waterwood Investment Group – a PE firm set up by Fang Fang, former head of J.P. Morgan’s China investment banking business.
Nanjing-headquartered Mychebao, also known as Chezhibao in Chinese, was founded in 2012. The company's platform connects car owners, dealers, and retailers, although it wants to focus more on the consumer-to-business (C2B) market. Its auto experts appraise vehicles before listing them online, allowing buyers to make direct offers to owners. Transactions are completed online with Mychebao providing after-sales services.
Mychebao previously raised a $10 million Series A round from Gobi Partners and Nanjing Venture Capital in September 2014. One year later, it secured a RMB300 million Series B led by JD Capital and Addor Capital.
The company’s services now cover 50 cities in China – some of these operations are already profitable – with 70 physical stores. Following the new investment, Mychebao plans to improve operational efficiency, build out its big data platform, and provide financial services to car retailers. It wants to facilitate RMB10 billion worth of loans to the used car industry over the next three years through partnering with commercial banks.
Chinese used-car trading platforms have drawn strong interest from PE and VC investors. C2C-focused platform Guazi.com recently announced that it raised $400 million in its Series B round. This follows sizeable rounds for the likes of Uxin and Renrenche.
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