Youxinpai, a China-based second-hand car online auction company, has raised $30m from corporate venturing units Legend Capital, Bertelsmann Asia Investments (BAI) and Tencent Industry and venture capital firm DCM.
Youxinpai’s series A round marks the largest investment to date in the Chinese second-hand car sector.
Dai Kun, former vice-president of Yiche, a consumer automobile information and pricing website, founded Youxinpai in September 2011. The angel investment came from Li Bin, chief executive of Yiche.com.
Chinese law firm Han Kun advised Legend, DCM and Bertelsmann on their investments in Youxinpai’s A round.
In related developments, Germany-based media conglomerate Bertelsmann has changed its China strategy from further developing its own business to investing in other companies.
Annabelle Yu Long is now chief executive of Bertelsmann China Corporate Centre and managing director of Bertelsmann Asia Investments, a China-focused investment fund with an annual budget of $100m.