Bain-owned Lionbridge gets funding from Baidu, Sunshine Insurance
Lionbridge, a Chinese commercial vehicle leasing business controlled by Bain Capital Private Equity, has received RMB1 billion ($150 million) in funding led by Baidu and Sunshine Capital, an investment unit of Sunshine Insurance Group.
The investors will work with Lionbridge on artificial intelligence-enabled (AI) risk control technology, autonomous intelligent driving, vehicle networking, and financial and insurance services. The aim is to build a smart services platform that addresses different phases of the commercial vehicle lifecycle.
Lionbridge was founded in 2011 by a team that previously led the leasing division at industrial equipment manufacturer Zoomlion. China CITIC Construction Corporation (CCCC) served as the new company’s sponsor, but it grew uncomfortable with the financial obligations tied to a business that was non-core. CCCC decided to sell and Bain paid more than $200 million for an 80% stake in 2014.
At the time, heavy-duty vehicle leasing to small and medium-sized enterprises (SMEs) accounted for 40% of Lionbridge’s total assets, alongside exposure to medical, manufacturing and agricultural equipment. The company also sought to combine leasing with operational assistance, providing financing services for fuel, repair and maintenance, and spare parts, as well as using its network to help drivers fill unused capacity on routes.
Lionbridge now claims to be the largest independent commercial vehicle leasing business in China, supporting more than 100,000 drivers and vehicle owners nationwide. Average financing per customer is RMB300,000. The company has issued nearly RMB13 billion in asset-backed securities on the open market and net assets are expected to reach RMB20 billion by the end of the year.
The focus on operational assistance has continued through Lionbridge Capacity, a dedicated platform that combines data mining and capacity forecasting to deliver vehicle matching, intelligent scheduling, dynamic pricing, and capacity bidding services. It is used by e-commerce, express delivery, and third-party logistics players.
In addition to individual drivers and vehicle owners, the Lionbridge network comprises 6,000 commercial vehicle dealers and over 14,000 transportation companies, as well as 4,600 directly-owned vehicles. It also works with car manufacturers to provide customized rental solutions for new energy vehicle users.
“Lionbridge has officially joined Baidu's Apollo program to jointly develop intelligent driving technology based on trunk logistics. Baidu will also contribute resources across AI, credit analysis, and driving and traffic mapping data, promoting Lionbridge as China’s most advanced commercial vehicle smart services platform,” said Zhenyu Li, general manager of Baidu’s intelligent driving business group, in a statement.
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