(Yicai Global) Oct. 31 -- Chinese second-hand car auction platform Tiantianpaiche, run by Shanghai Jinwu Automotive Technology Consulting Co., secured USD80 million in C2-round funding led by Industrial Bank Co. [SHA:601166] and backed by well-known investment institution Hanfor Capital Management, Jiemian News reported.
The company bagged USD100 million in C1-round financing, giving a total of USD180 million for its now-complete C-round, marking the most any used car consumer-to-business auction has raised in China in C-round funding and overall.
Tiantianpaiche uses internet technology to resolve such issues as low turnover and circulation of used cars across regions. Its trading volume is continuing to rise.
The platform was set up in September 2015 in an effort to help individuals sell their cars for better prices. In its A- and B-round funding it raised a total of USD73 million, coming from car trading platform Beijing Yiche Information Technology Co., internet giant Tencent Holdings Ltd. [HKG:0700], Softbank China Venture Capital and others.
With the new funds, the firm will continue to focus on its core business and expand across more cities, develop standardized services, improve efficiency and enhance user experience to set itself aside from competitors in terms of operations, product technology and brand reputation, it said. It will also carry out more value-added auction services and extend its business chain to both ends of used-car trading, including part exchanges, used car loans and auto insurance.
China's used car sector is worth trillions of yuan, and is ushering in an explosive growth period as user demand soars. Industrial Bank backed the platform because it appreciated is core business model and ability to operate online, the investor said.
Tiantianpaiche tidied up the scattered, non-standard trading environment in the China's used car market. It uses mobile internet technology to meet user needs and sources vehicles nationwide. This cross-region circulation of used vehicles has a bright future ahead, the bank added.