China-based car sharing platform Like Chuxing has raised $20m from investors including Legend Capital, the venture capital firm formed by conglomerate Legend Holdings, Yicai Global reported yesterday.
The funding was provided through angel and series A rounds, and Legend Capital was joined by VC firm K2VC, according to local technology news provider 36kr, which reported that the company intends to disclose details of a subsequent round, without revealing whether that funding had closed.
Like Chuxing, which is operated by holding company Tianjingshan Friends Technology, offers timeshare schemes which enable customers to spread the cost of using luxury vehicles by splitting ownership with others.
The company was founded in the city of Guangzhou where it now has 1,000 rental stations, but has since expanded into Foshan, Wuhan, Chengdu, Nanjing and Changsha.
Legend Capital believes that, although market barriers have made the sector a trickier proposition than other internet-focused mobility services, it anticipates growth for timeshare car rentals due to the growth of China’s electric car industry and amenable central government policies, according to Yicai Global.