Chinese Car Rental Service Yongche Announces $60 million Funding Led by Ctrip and DCM

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yongcheYongche, a Chinese car rental service, announced today a new funding round of $60 million let by Ctrip and DCM. The funding will be used for development of mobile app and other services, according to the company. The company will launch a 5.0 version of mobile app shortly (source in Chinese).

Ctrip, one of the biggest online travel companies in China, said its own online services, air ticket, train ticket, hotel and so on, will be bundled to Yongche.

Founded in 2010, Yongche now covers 49 Chinese cities. It plans to expand to more than 100 cities in and outside China next year. The company also runs a taxi app Dache Xiaomi.

As one of the first Uber-style car rental services in China, Yongche raised angel investment of $1 million from ZhenFund in 2010, some ten million dollars in Series A from Morningside Ventures and Qualcomm Ventures in 2011, $15 million in Series B from CBC Capital and some of existing investors in April 2013 (source in Chinese).

Thanks to the international expansion of Uber, including its recent approach to China, car rental-related services are of what Chinese investors are chasing after.