Gobi invests in China second-hand car trading site Mychebao

The size of the round was not disclosed but is understood to amount to tens of millions of dollars.

Headquartered in Nanjing city, Mychebao provides a platform that connects used car sellers with buyers, with the company receiving a 3.8% commission from each transaction, Le Huang, CEO of the company, told local media.

Following its launch in January last year, the e-commerce site claims to have sold over 10,000 cars, with an average of 800 transactions every month. In addition, the e-commerce operator has signed deals with 500 second-hand vehicle dealers, who have agreed to sell their inventories via the site. Machebao runs five times of online auction every day, allowing traders to bid for the used cars.

Venture capital investors have seen the rising potential of China's used car market. Two months ago, IDG Capital Partners provided a Series A round for Youche.com, a online trading platform for second-hand cars. Earlier this year, Cheyipai received $50 million in funding led by Sequoia Capital. The investment was said to be the largest ever seen in China's vehicle e-commerce segment. Existing backers Morningside Ventures, Matrix Partners and CITIC Capital also participated.

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 China Automobile Dealers Association.

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• Topics
• Greater China
• Venture
• Consumer
• China
• Gobi Partners
• Venture
• e-commerce
• TMT
• automobiles