VC-backed Chinese car rental firm eHi files for US IPO

The size of the offering and pricing terms were not disclosed in the regulatory filing.

Established in 2006, eHi is the second-largest car rental services provider in China. It has a fleet of more than 15,000 vehicles covering over 90 cities. As of June, the firm had 550,000 registered members and over 32,000 corporate clients. It derived two-thirds of last year's revenue from rentals, with the rest from chauffeured car services.

The company first received VC funding in 2006 with a $5 million investment from Ignition Partners and Qiming Venture Partners. Qiminig returned in 2009 to invest $20 million alongside CDH Investments and JAFCO Asia. In 2010, the firm raised a further round worth $70 million led by Goldman Sachs, with participation from New Access Capital, Qiming, CDH, Ignition and JAFCO.

Ctrip International, China's largest online travel agency, committed more than $100 million in eHi last year to become the second-largest investor after US car rental firm Enterprise Holdings.

According to the filing, Ctrip now owns 23% of the company, while CDH owns 12.9%. Qiming and Goldman have 11.9% and 10.7%, respectively. Ignition holds 9.1%.

While the revenue increased from RMB450 million ($73 million) in 2012 to RMB566 million last year, eHi has yet to turn a profit. It posted a net loss of RMB152 million in 2013, compared with RMB176 million in 2012.

The company plans to use the proceeds to expand its fleet and service network. Dongfeng Asset Management and Kunyu Capital Ltd. have each agreed to buy shares in the IPO.

J.P. Morgan, Goldman Sachs and Deutsche Bank are managing the share sale.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Consumer
• Exits
• China
• USA
• IPO
• Exit
• CDH Investments Management
• Venture
• Qiming Venture Partners
• Goldman Sachs
• Consumer
• Transportation