Chinese second-hand car trading site Mychebao raises $50m
JD Capital and Addor Capital have led a RMB300 million ($50 million) Series B round of funding for Mychebao.com, a Chinese online trading platform for second-hand cars.
Gobi Partners, Nanjing Venture Capital and Bank of Nanjing also participated in the round. Gobi led a $10 million Series A investment in the start-up last September.
Founded in 2012, Nanjing-headquartered Mychebao provides a consumer-to-retailer (C2R) platform that connects car owners, dealers and service retailers. Mychebao's auto experts appraise the cars and then list them online for trade or sale. Interested buyers can then make an offer to the owner. Transactions are completed online with Mychebao providing after-sales services.
The start-up's services at present cover 12 Chinese cities, including Beijing, Shenzhen, Hangzhou and Chongqing. It completes about 5,000 transactions every month, with each deal generating a 3% commission that is collected from the seller upon completion.
This latest round of funding will be used to expand into new markets, optimize operations in current markets, improve the company's trading platform, hire more staff and build up second-hand auto retail financial services, according to a statement.
China's used car market has gained traction with PE and strategic investors. A few weeks ago, Tencent Holdings led a $85 million Series C round of funding for Renrenche.com, a Chinese peer-to-peer second-hand car trading platform. Earlier this year, KKR teamed up with search giant Baidu and US-based hedge fund sponsor Coatue to invest $170 million in Uxin, a Chinese online used car auction company best known for B2B platform Youxinpai.
Meanwhile, Baird Capital led a Series A round for Carsing, a Shanghai-based used car auction platform, followed by FLAG Squadron Capital and Delta Capital. Social networking platform Renren also led $110 million Series D round for second-hand car trading platform Cheyipai.
Other groups to receive funding last year include Youxinpai, Souche Holdings and Youche.com.
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