AAA Tencent chases down Chehaoduo in $818m round

Tencent chases down Chehaoduo in $818m round

Internet group Tencent has led an $818m series C round for China-based automotive e-commerce platform Chehaoduo, China Money Network reported today.

Shougang Fund, an investment branch of steelmaker Shougang, and ICBC International, a subsidiary of Industrial and Commercial Bank of China, also took part in the round.

The investors were completed by Yunfeng Capital, FountainVest Partners, GIC, IDG Capital, Taihe Capital, Sequoia Capital China, H Capital, DST Global, Capital Today and Shanhang Capital Investment.

Chehaoduo was formerly known as Guazi, which is still the brand under which its used car trading platform operates, but the company has expanded into new car sales through a brand called Maodou as well as online vehicle auctions and adjacent services like insurance and appraisal.

The company, which is also moving into vehicle leasing, increased its full-year revenue by 300% in 2017, it said this week. It also cited data compiled by a third-party researcher indicating that it has a 68.3% share of the used vehicle auction market in China.

The series C funding was secured just three months after Chehaoduo closed a $180m series B+ round featuring Capital Today, Sequoia Capital China, H Capital, DST Global and a subsidiary of financial services group Bank of China Group.

Chehaoduo had initially raised a reported $60m in angel funding before securing $250m from Sequoia Capital, Matrix Partners China, BlueRun Ventures, GX Capital, Hike Capital, Welight Capital and StarAngelFund in 2016.

The Shougang-founded Jingxin Venture Capital subsequently joined financial services firm China Merchants Bank’s CMB International as well as H Capital, Dragoneer Investment Group, Matrix Partners China and BlueRun Ventures for the company’s $400m series B round in June 2017.

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