Zhejiang-based Tianma Bearing Group Co., Ltd. and Southeast University Education Foundation have jointly invested RMB140 million (about US$20.35 million) in Diyi Chedai, a Shanghai-based auto lending start-up. with Phoneix Tree Capital as its exclusive financial advisor.
This investment round is a Series B extension round that came just one month after the company raised RMB360 million (about US$52 million) in a financing round led by Addor Capital and Youjin Capital in January, bringing its fundraising total to RMB500 million (about US$72.7 million).
Speaking on the fundraising round, Guo Chao, the CEO of Diyi Chedai said, “The quick completion of the B+ financing round, was in part due to the efficiency of our internal staffs in addition to representing the highest degree of recognition for Diyi Chedai’s business model, professionalism as well as our market prospects.”
Founded in 2013, Diyi Chedai provides loans to car dealerships, car logistics companies, and car rental firms. It currently operates in 80 cities around China and has recorded RMB12 billion (about US$1.75 billion) in its cumulative financing provided to thousands of Chinese automobile companies in 2016.
Since its inception, the company has also established multiple partnerships with various domestic insurance companies, commercial banks, and auto financing firms including China Minsheng Bank, CGB Bank, SPD Bank, China ZhengTong Auto among some.
Prior to this, the company received an undisclosed series A round from CITIC Group, Beijing Automotive Group, Matrix Partners and other investors in 2015, and RMB217 million (US$31 million) in series A+ from China Growth Capital, Matrix Partners China, and Youjin Capital in April 2016.
The company plans to use the latest proceeds to expand its platform, merge its online services with offline services, and improve its financial products and services.
By Vivian Foo, Unicorn Media