China-based online vehicle marketplace Cheyipai is reportedly in talks to raise $45m in funding led by an unnamed subisidiary of automotive manufacturer BAIC Group, China Money Network reported today, citing local reports.
Cheyipai had set up operations in more than 100 cities and established partnerships with approximately 5,000 used car dealers, but its business model has proven unsustainable, with low profit margins on transactions and increasing marketing costs.
The funding will help the company pivot to a business-to-business model, offer car financing and create a services platform.
Cheyipai received $110m in a February 2016 series D round led by social media and fintech company Renren that included internet company Tencent, Citic Capital, sovereign wealth funds China Investment Corporation and Qatar Holding, and VC firms Sequoia Capital, Matrix Partners and Morningside Ventures.
Cheyipai previously raised $75m in capital, with Citic Capital contributing to a $50m series C round in 2014 that was led by Sequoia and backed by Matrix and Morningside.