China-based automotive e-commerce platform Chehaoduo today secured a $1.5bn investment from SoftBank Vision Fund, the near-$100bn vehicle managed by telecommunications conglomerate SoftBank.
Reports about SoftBank’s potential investment first emerged earlier this month.
Chehaoduo, a spinout of classified marketplace Ganji, operates a used vehicle auction and trading platform known as Guazi and an after-sales services subsidiary, Maodou.
The funding will go drive technology, product and services development. Chehaoduo also plans to increase its marketing activities and bolster its offline presence.
Chehaoduo previously received $162m in series C-plus funding in October 2018 from Tiantu Capital, DST Global, Nuoweiqi VC and CKE, together with $430m of financing from Kunshan’s municipal government, though it is unclear what form the latter took.
Chehaoduo has now raised more than $3.3bn in total funding.
Internet company Tencent led an $818m series C round in March 2018 with participation from Shougang Fund, an investment arm of steel manufacturer Shougang as well as ICBC International and Singaporean sovereign wealth fund GIC.
Yunfeng Capital, FountainVest Partners, IDG Capital, Taihe Capital, Sequoia Capital China, H Capital, DST, Capital Today and Shanhang Capital Investment also joined the series C.
Shougang-backed Jingxin Venture Capital had participated in a $400m series B round in 2017 alongside financial services firm China Merchants Bank’s CMB International unit, H Capital, Dragoneer Investment Group, Matrix Partners China and BlueRun Ventures.
The company’s shareholders also include GX Capital, Hike Capital, Welight Capital, StarAngelFund and online classified listings portal 58.com.
Eric Chen, partner for SoftBank Investment Advisers, said: “China’s used car market is growing rapidly but online penetration remains low and auto financing is underutilised compared to developed markets.
“In just three years, Chehaoduo Group, through the Guazi brand, has leveraged the latest innovations in data-driven technology to establish China’s leading car trading platform.
“The company has a bold vision with technology at its center to underpin an industry network that will support transformative growth of the market.”
