(Yicai Global) Feb. 28 -- China's Chehaoduo Group, the parent company of used car platform Guazi and new car portal Maodou, received USD1.5 billion from SoftBank Vision Fund in its series D funding and is now valued at over USD9 billion.
Taihe Capital is also its exclusive financial advisor, Chehaoduo announced today.
This financing will go to marketing, new offline retail stores, investment in research and development of products and technology, and prospecting for new businesses.
The group has more than 600 outlet stores providing second-hand cars, new cars and maintenance services.
The firm raised USD818 million one year ago in its C round, led by Shenzhen tech titan Tencent Holdings, but with much of it also coming from Softbank.
China's used car market is growing rapidly but has low degree of integration with the internet and the auto finance market is immature, believes Dr. Chen Xun, a partner in Softbank's venture capital arm Vision Fund. Guazi has created a leading automobile consumption service platform in China through the technological innovation driven by Big Data in the past three years.
The company wants to restructure the sector's ecosystem via technology and promote its market transformation and growth.
"The partnership with Softbank Vision Fund can not only further strengthen the Group's financial strength, but also promote the technological innovation of Big Data and artificial intelligence and apply them in every link of the automobile consumption chain. We will continue to thoroughly connect all businesses in the ecosystem, rebuild the infrastructure and service chain of the entire sector and steadily improve the service efficiency and experience with data technology innovations," said Yang Haoyong, chief executive and founder of Chehaoduo Group.
Developed from Guazi, which was founded in 2015, the Kunshan, Jiangsu province-based Chehaoduo Group has secured USD4 billion in investment from IDG Capital Partners, Sequoia Capital and DST Global in addition to from Softbank's Vision Fund.
Formed in 2017, Maodou opened 300 offline stores last year, over half of which are in third-tier and below cities.
Editor: Ben Armour