China-based chauffeured car service provider UCar raised $250m in series A funding yesterday, $125m of which was provided by its affiliate, vehicle rental service CAR.
CAR, also known as China Auto Rental, paid $125m for 2.5 million series A preferred shares, giving it a 10% stake in UCar. The other $125m was provided by Legend Capital, the corporate venturing unit owned by conglomerate Legend Holdings, and private equity firm Warburg Pincus.
UCar’s service involves offering qualified drivers and high-quality cars to professional customers. It currently spans around 60 Chinese cities
UCar and CAR formed a partnership in January this year through which CAR agreed to supply cars at market rates to help the company develop its business in return for right of first refusal in any equity round.
Charles Lu, Chairman and chief executive of CAR, said: “Our investment in UCar will not only create significant business synergies, but will also bring us one step closer to executing our strategy and realising our vision.
“We will continue to enhance customer experience through big-data and online-to-offline innovations, build up China’s leading auto mobility service platform and promote the smart travel ecosystem in China. We believe this investment will further fuel our strategy.”