Automotive e-commerce company Autohome agreed yesterday to invest $168m in China-based online car auction platform TTP Car yesterday.
Also known as Tiantian Paiche, TTP operates an online platform that allows car owners to auction off their vehicles to a customer base of second-hand dealers.
Autohome had previously paid $100m for an 8% convertible bond in the company in June 2018 and the latest deal gives it the option to buy up to $200m in convertible bonds upon request.
Min Lu, Autohome’s chairman and chief executive, said: “Over the past two years, we have witnessed the robust development of China’s used car market. As a leading used car auction platform in China, TTP is well positioned to add significant synergetic value to Autohome’s used car business.
“By working closely with TTP, Autohome will deeply integrate itself into upstream supply of used cars, leverage the transaction business to further develop its auto finance operations, and build a comprehensive [customer-to-business-to-customer] ecosystem for used car transactions, aiming to become China’s largest used car platform.”
TTP raised a total of $73m in 2014 and 2015 across series A and B rounds featuring internet group Tencent, automotive information provider BitAuto, telecoms and internet group SoftBank’s SB China Capital vehicle and quantitative trading firm Susquehanna International Group’s SIG Asia unit.
All the corporates returned in 2016 as the company secured $100m in a series C round also featuring private equity firm Pagoda Investment. Industrial Bank of China led an $80m round the following year that included Hanfor Holdings.
