/Used car trading grows fast in China with Guazi and Chezhibao securing financing, & more

Used car trading grows fast in China with Guazi and Chezhibao securing financing, & more

Largest C2C used car trading platform Guazi.com receives USD 400 million for Series B

Guazi.com

Founder: Yang Haoyong

Founded in: 2015

Financing status: RMB 27 billion (USD 400 million) Series B round in 2017

China’s largest C2C used car trading platform Guazi.com on Thursday received USD 400 million for its Series B financing round to increase its used car trading volume on its platform.

Guazi.com is China’s largest customer-to-customer (C2C) used car trading platform which links individual car sellers and buyers in China’s rapidly growing used car market. Individual sellers can upload information of their cars on the platform, and directly sell it to individual buyers without the need to trade through third party dealers or resellers.  Guazi.com also provides vehicle quality checks, vehicle insurance, and financial services. In addition, Guazi.com charges 3 percent of the transaction price of each car sold as service charge.

Currently, Guazi.com’s used car trading services cover 200 cities in China. Its turnover exceeds RMB 100 million in some cities such as Beijing, Shanghai, Shenzhen, and Chengdu. It aims to reach a trading volume of 80,000 used cars monthly by the end of this year.

Guazi.com was founded by the CEO of online classifieds site Ganji.com which later merged with 58.com. Now, 58.com has become China’s largest online marketplace serving local merchants and consumers.

This Series B financing round was led by  Sequoia Capital China which also invested in its previous financing round. Also participating in this financing round are existing investors including Matrix Partners China, BRV Aster Fund, and Hike Capital, and new investors such as H Capital, Shougang Capital, and so on. The capital will be used to upgrade its trading services, and putting in more money for staff training.

Used car auction platform Chezhibao receives USD 73 million for Series C+

Photo from 58pic.com
Photo from 58pic.com

Chezhibao

Founder: Huang Le


Founded in: 2012

Financing status: RMB 500 million (USD 73 million) Series C+ round in 2017

Used car auction platform Chezhibao on Thursday received USD 73 million for its Series C+ financing round to launch financial services to boost its used car trading.

Chezhibao is an online used car auction platform that connects car owners, dealers, and buyers to facilitate used car transactions. The platform provides free appraisal services for car owners after they submit a car sale request. Chezhibao facilitates used car trading based on auctions, and the car will be sold to dealers or buyers who bid for the highest price. It also built a logistics network to enable car trading between cities.

Founded in 2012 in Jiangsu, Chezhibao has offices in 15 cities including Beijing, Shanghai, Shenzhen and Chongqing, with plans to expand to 100 offices in 2019. It has also reached partnerships with car dealers in over 50 cities to enhance its car trading services.

This Series C+ financing round was led by Youjin Capital and Jiangsu One Belt One Road Investment Fund. The company plans to use the fund to expand its used car auction services to new cities in China, and introduce financial services to boost its used car trading by seeking partnerships with banks. Moreover, it will introduce big data technology to Chezhibao’s trading services for higher trading efficiency.

(Top photo from 58pic.com)

Kaikai Shi majored in Biotechnology at Zhejiang University. He now runs the Tech Financing column for AllChinaTech. His interests are in new technology and reading. Kai believes that new technology will change the world we live in, and is trying to engage himself in this process.