Chinese used car auction platform Tiantianpaiche has received US$100 million strategic investment Autohome, a Chinese automobile online platform, according to Tiantianpaiche’s announcement on its official WeChat account.
Autohome also obtained the right to invest as much as US$65 million in the form of convertible notes in Tiantianpaiche in the three years after the completion of this investment. The two companies will deepen their strategic partnership going forward, with more operational cooperation and integration.
The announcement came a day after Tiantianpaiche’s peer Chezhibao, Nanjing-based customer-to-business used car auction platform, raised a RMB800 million (US$125 million) series D round led by Chinese private equity fund Green Harbor Investment.
Used car online auction platforms have been raising billions of U.S. dollars in China, trying to compete to become the market leader. But at least a handful of companies are still vying for the number one position, and no clear winner has emerged. For Tiantianpaiche, taking Autohome as a strategic investor could anchor its future and help it better compete in the market place.
Founded in 2015, Tiantianpaiche focuses on a customer-to-business model connecting sellers of used cars to used car dealerships. After this round, the firm has raised a total of US$353 million in total fundraising. It has more than 40 offline shops in Shanghai, Beijing and Guangzhou. It expects transaction volume on its platform will reach one million vehicles annually in 2020, said the company.
The proceeds of this round will be used for business expansion to more cities in China and develop new businesses including used car retail and used car financing services.
Tiantianpaiche raised a total of US$180 million C round last year. Its investors include Tencent, SIG, SB China Venture Capital (SBCVC), Yiche.com and others.