VC-backed auto financing platform Yixin files for HK IPO

Financial details of the offering have not been disclosed, though media reports have estimated its potential valuation around $5 billion. In its prospectus, the company said it hopes the listing will strengthen its competitive position in China’s online auto market by promoting its public profile and visibility in domestic and international markets so it can attract more consumers and business partners.

Bitauto launched Yixin in 2015 to provide financing for consumers buying cars through the Bitauto platform, value-added services for auto dealers, and advertising and subscription services for auto makers, dealers, finance partner and insurance companies.

The company claims to have facilitated over 260,000 transactions for the year ended December 2016, with the aggregate value of the underlying automobiles estimated at RMB26 billion ($3.9 billion). For the six months ended June 2017, it facilitated 160,000 transactions with an aggregate value of RMB16 billion, representing an increase of 87.6% and 93.6% respectively over the same period the previous year.

Yixin’s backers include Chinese internet giants Tencent Holdings, Baidu and JD.com, which invested $550 million in the company last year. All three are also investors in Bitauto, along with PAG Asia Capital. IDG Capital also invested $505 million in Yixin’s Series C round earlier this year. Currently, IDG holds 6.4 million shares in Yixin, representing a stake of less than 1%. The company has not said whether any of its investors will exit in the offering.

For the year ended December 2016, Yixin recorded revenue of RMB1.5 billion, up from RMB271 million the year before. Over the same period the company’s net loss grew from RMB28 million to RMB1.4 billion.

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• Topics
• Greater China
• IPO
• Technology
• Financials
• Hong Kong (China)
• Exit
• TMT
• IDG Capital Partners