Renren backs China used car platform Cheyipai

Existing investors Sequoia Capital, Matrix Partners, Morningside Technologies and CITIC Capital also participated.

Established in 2006, Cheyipai is an auction-style trading platform, connecting car sellers and car dealerships. It follows an online-to-offline business model, with four operation centers, 10 after-sales service centers and sales points covering 300 Chinese cities. It claims to be the largest used car trading platform in China, with over 500,000 transactions conducted by the end of last year.

The new capital will be used for offline business development and hiring more professionals to improve car testing and after-sales services, according to a statement posted on the company's official Weibo microblog.

Cheyipai raised $5 million from Morningside in 2011, and a further $20 million from Matrix in 2013. In February last year, Sequoia led a $50 million Series C round, with participation from Morningside, Matrix and CITIC Capital.

Venture capital and private equity investors are looking to tap the rising potential of China's used car market. Last September Gobi Partners invested in a Series A round for Mychebao, while Warburg Pincus and Tiger Global participated in a $260 million round for Youxipai. In the same month, Sequoia led a Series B round for Souche Holdings. In July IDG Capital Partners backed Youche.com.

Hina Group acted as financial advisor for the Cheyipai deal.

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• Topics
• Greater China
• Venture
• Consumer
• Technology
• China
• Sequoia Capital
• Matrix Partners
• Morningside Technologies
• CITIC Capital
• TMT
• Venture
• automobiles
• Consumer