The online platform for used cars, Mychebao, announced today that it completed its D round of financing, raising RMB 800 million. Green Harbor Investment was the lead investor and the follow investors included Pacific Alliance Group (PAG), Addor Capital, and Gobi Venture Capital. CEC Capital served as the sole financial adviser to Mychebao during this round of financing.
Founder and CEO of Mychebao, Mr. Le HUANG, explained that this current round of financing will be used to expand and improve the company’s brick-and-mortar service centers while promoting the company’s development of digitized financial and logistics services. From 2017 to 2018, Mychebao saw a 400% increase in transaction volume and revenues, as well as the doubling of personnel efficiency. In both 2017 and 2018, over a million vehicles were sold using the Mychebao platform. Mychebao maintains strong profitability.
In the future, Mychebao aims to comprehensively deepen strategic ties with cooperation partners (such as Ali Used Cars), establish car acquisition channels in over 200 cities, and strengthen Mychebao’s position as the top platform for cross-regional transactions and consumer-to-business (C2B) transactions.
Mychebao is planning to roll out financial services to support second-hand car sales, including supply chain finance and retail finance services. These services would turbocharge automobile consumption in China. Multiple banking organizations have already pledged their support for Mychebao’s supply chain finance services, pledging a total amount of around RMB 10 billion in credit. This credit will be used to establish the largest used car supply chain financing service platform in China, which will provide some hundred thousand used car dealers access to asset-based loans.
Mychebao also offers logistics services through its Zhiche Logistics. The company aims to increase the efficiency of the logistics service platform so as to earn a 50% share of the inter-regional used car logistics market.
The lead investor of this round of financing was Green Harbor Investment. Green Harbor Investment has previously invested in Lianjia, WuXiAppTec, STA Pharmaceutical, Tencent Music, ZhongAn Insurance, Ant Financial, Suning Financial Services, and Sanli International Education Group.
Founding Partner of Green Harbor Investment, Mr. Zidi LIU, explained that since Mychebao was established six years ago, it has collected a massive amount of digital assets related to its consumers, vehicles, transactions, services, and distributors. Knowing that the market for used cars will grow to a scale of some trillions of dollars, Green Harbor Investment is certain that the digital assets collected by Mychebao will prove invaluable for the development of services related to financing, retail, and logistics. The unique business model and high operational efficiency of Mychebao have helped the company to capitalize on the development opportunities offered by the growing used car market. Furthermore, the optimized and efficient services that it offers, have allowed Mychebao to increase its corporate value. As the lead investor for this round of financing, Green Harbor Investment is confident that Mr. Le HUANG’s company, Mychebao, has great prospects for future development.
Previous investors to Mychebao, including Pacific Alliance Group, Addor Capital, and Gobi Venture Capital, participated as follow investors during this round of investment.
In just six years Mychebao has become the country’s largest platform for used car sales in China. Mychebao has registered car dealers from more than 300 cities. Mychebao is the top consumer-to-business service provider in China. It is the only used car platform to complete its D round of financing.
Analysys Ltd. recently released an annual report showing that based on Mychebao’s performance as a platform for inter-regional used car sales, its data resources, and technological capabilities for Big Data and AI technologies, as well as the company’s competitive edge for value-added services in the finance and logistics sectors, Mychebao has already become the benchmark in the consumer-to-business used car service industry. Furthermore, iiMedia’s annual report pointed out that Mychebao is currently the leading customer-to-business service provider, as evinced by its high level of recognition and its impressive ranking.
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