Ikea entity leads Series C for China EV rental player

Other new investors include SMRT Ventures, Runxin New Vision Fund Management. There was also participation from existing backers Bojiang Capital and Matrix Partners China. 

Dishangtie will use the new capital to build digital systems, expand its offline maintenance network, and explore opportunities overseas. 

Founded in 2015 and also known as DST Car Rental, the company targets intra-city freight. It serves 2,500 corporate customers through a network of more than 40,000 vehicles in 8,000 service stations across 200 cities. It also operates or connects to 150,000 charging piles and has links to 400 maintenance service providers.

Dishangtie has collaborated with Ikea since 2019 and now accounts for one-third of the Swedish furniture retailer's distribution capacity in China. Operations covered by the partnership span Beijing, Guangzhou, Shanghai, Changsha, and Zhengzhou. Ikea has realized 100% EV distribution in Shanghai.

"We are very pleased to lead the round in Dishangtie. This is a significant step in Ikea's commitment to provide electric-vehicle delivery for customers. This move enables us to reduce carbon emissions while keeping our promise to customers," said Krister Mattsson, general manager of Ingka Investment, in a statement.

Ingka's investments cover renewable assets, the circular economy, and digitalization assets that contribute to its core retail business. The company owns and operates 378 stores and 45 shopping centers globally. The Ikea brand and franchise assets are controlled by a separate foundation.

Dishangtie's Series C comprised several tranches. Olympus Capital Holdings Asia - investing via Asia Environmental Partners - contributed tens of millions of dollars to the first tranche in January. Existing shareholders Itochu Corp and Jeneration Capital also participated in the first tranche, according to AVCJ Research.

The company raised approximately $170 million across four previous rounds. Other early backers include Qiming Venture Partners, Eastern Bell Capital, and Idinvest Partners.

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• Topics
• Greater China
• Expansion
• China
• Matrix Partners
• automobiles