Investors including internet group Tencent and automotive e-commerce firm Bitauto agreed yesterday to invest a total of up to RMB4bn ($580m) in China-based online vehicle trading platform Yixin Group.
The corporates were joined by state-owned asset management firm China Orient AMC International and Wei Wang, the founder and chairman of package delivery service SF Express.
Yixin has created an online marketplace for new and used vehicles that is used by carmakers, vehicle dealers and automotive service providers as well as financing and insurance partners.
The company was originally spun out of Bitauto, which will retain a 48% stake in Yixin once the round closes.
The deal is expected to close by the end of this month and will follow a $550m round closed in August 2016 with backing from Bitauto, Tencent, internet company Baidu and e-commerce firm JD.com.
Andy Zhang, founder and CEO of Yixin, said: “We are delighted to announce the new investments from our existing and new strategic investors. We are confident that with the strong support from our shareholders and partners, Yixin is well positioned for long-term success.”
Yixin operates in a Chinese online vehicle trading sector that has become increasingly crowded and several of its rivals raising significant funding. The last to close a big round was Souche.com, which raised $180m in a series D last month.