Online auto retailer raises US$200 million
Chinese online auto retailer Chehaoduo Group said it raised US$200 million equity investment from existing investors SoftBank Vision Fund and Sequoia Capital to strengthen its automobile after-sales services.
It will also use the funding to help reboot second-hand car sales and make second-hand car transactions more efficient.
"We will continue to build business synergies between online and offline resources and to actively respond to market challenges and macroeconomic risks and emergency situations, and we will also enhance the ability to better connect industry players," said Chehaoduo Group CEO Yang Haoyong.
Previous investors include Tencent, Yunfeng Capital, Capital Today China, ICBC International and IDG Capital.
Vehicle sales in China fell 42.4 percent in the first quarter from a year earlier, after recording their 21st consecutive monthly decline in March, according to the China Association of Automobile Manufacturers.
Chehaoduo, which started out as an online second-hand vehicle dealer, has expanded to include new car sales and also offline stores by partnering with automakers and traditional car dealers.
It achieved profitability in last year's fourth quarter and the new funding will allow it to include more services such as repairs and insurance.