China second-hand car platform Youxinpai raises $260m

AVCJ Research records show Beijing-based Youxinpai previously two rounds of investment from Legend Capital, Bertelsmann Asia Investments (BAI), DCM and Tencent Collaboration Fund.

Youxinpai was set up in 2011 as online platform for used car auctions and claims to have the highest transaction volume of any such site in China. In addition to an online platform, the company owns six centers, offering auctions and after sales services in Beijing, Shanghai, Guangzhou, Chengdu, Tianjin and Hangzhou. The site has so far provided auction services to about 15,000 car sellers.

The new funding will be used to expand the network of physical centers in new cities as well as for data collection, improving technology and providing financial services, according to a statement.

China's used car market has gained traction with VC investors. Earlier this month, Gobi Partners invested in a Series A round for Mychebao, while in July IDG Capital Partners backed Youche.com. In February, Sequoia Capital led a $50 million round of funding for Cheyipai, with participation from existing backers Morningside Ventures, Matrix Partners and CITIC Capital.

In 2013, China's second-hand auto sales grew 8.6% to 5.2 million vehicles, with private cars accounting for 3.04 million, according to the China Automobile Dealers Association.

China Renaissance acted as financial advisor for the Youxinpai transaction.

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• Topics
• Greater China
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• China
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• Warburg Pincus Asia
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• automobiles