Chinese smart car wash business closes $84m Series C

1km raised RMB200 million in each of the two earlier tranches. They were led by PICC Capital Equity Investment - the private equity arm of state-owned People's Insurance Company of China - and Centurium Capital, respectively, according to a statement.

The company operates 1,400 outlets in 38 cities. It claims that 90% of these locations are profitable. The new funding will support continued business growth, with 1km looking to open 6,000 additional outlets in the next two years.

Founded in 2014, the Hangzhou-headquartered company offers an around-the-clock service using fully-automated machines. 1km's entire network of stores is run by a staff of just 102.

A car wash can take as little as three minutes and costs RMB10-30. The company also claims to provide the most environmentally friendly service in China. Its machines use as little as 16 liters of water per wash - 20% of amount typically used in manual car washes. Wastewater is run through a recycling system and reused.

1km has raised RMB1 billion since its inception. Last year, it received a strategic investment from Alibaba and was subsequently integrated into the internet giant's automobile after-sales services platform. At the same time, the PICC connection offers access to a large base of auto insurance users.

Following Alibaba's commitment, 1km accelerated its growth and became the number one player in the market. Other players in the space include Big Box which is backed by Morningside Venture Capital. Broadly speaking, there are two business models: companies can open self-service cash wash stations, which usually return investment in two years; or they can rent or sell equipment to gas stations.

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• Topics
• Greater China
• Consumer
• Expansion
• China
• Technology
• ClearVue Partners
• Centurium Capital