Shenmachuxing, the China-based electric vehicle trading platform backed by chemical manufacturer Red Avenue New Materials Group, has raised $20m in series A funding.
Financial services firm KTB Investment & Securities led the round, which also featured venture capital firm Frees Fund.
Founded in 2018, Shenmachuxing has developed a platform for the buying and selling of rural new energy vehicles (NEVs) which are partially or fully powered by electricity. It also offers software that helps vehicle dealers with services such as production, inventory management, logistics and after-sales services.
The company’s platform, which is currently live in 201 cities across 28 provinces in China, has been responsible for the sales of more than 20,000 NEVs to date. Proceeds from the round will be used to upgrade its supply chain and technical systems, and build out its team.
Shenmachuxing raised more than $10m in an August 2018 pre-series A round led by Red Avenue New Materials Group, according to China Money Network. It had received a nine-figure renminbi amount in an angel round backed by Frees Fund and Shunwei Capital three months earlier.