Chinese gas station platform raises $110m Series C
Newlinks Group, operator of the Chezhubang platform that helps drivers in China locate the best value gas stations, has raised a $110 million Series C round led by Joy Capital.
Other investors include Nio Capital, a fund manager controlled by local electric vehicle manufacturer Nio, and Korea Investment Partners (KIP) China.
Launched in 2016, Newlinks has become one of the largest data providers in the energy infrastructure industry. It now has three core products: Chezhubang, which identifies nearby gas stations and electric vehicle charging locations with the most competitive prices; as well as Tuanyou and Kuaidian, which specialize in fossil fuels and electric car charging, respectively.
The company claims to cover more than 400 cities with revenue growing at a compound monthly rate of 20%. It has supply side partners such as China National Offshore Oil Corporation (CNOOC) and Shell. On the consumer side, it works with driver-focused apps like Baidu Maps and Gaode Map.
“Newlinks has offered an effective energy replenishment service to more than 30 million vehicle owners. It is the largest digital energy management platform in China. The company has a deep understanding of industry and technology developments,” said Erhai Liu, founding partner of Joy Capital.
He added that as China's technology-based new economy infrastructure matures, companies like Newlinks can help transform business models from price-based to service-based competition.
In September, Newlinks raised RMB450 million in Series B funding, jointly led by China’s National Small Medium Development Fund and Oriental Fortune Capital. Two regional government investors also contributed. GSR United led a Series B of RMB275 million in April.
China’s fuel retail market has long been dominated by China National Petroleum Corporation (CNPC) and Sinopec, the country’s two largest oil companies. Chezhubang entered the space first by focusing on price-sensitive commercial car users, while also working with gas station operators that are not part of the CNPC and Sinopec networks.
These operators are usually more inclined to offer discounts on fuel as a means of attracting customers. At the same time, these collaborations have served as gateways to establish relationships with CNPC and Sinopec.
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