Ctrip, the Chinese online travel giant, will lead a $100 million funding round in Chinese car rental company eHi AutoServices for a 20% stake, according to eHi (Weibo). The funding will be used for buying new cars, offline stores and headcount, said Leo Cai, executive vice president of the company.
It’s only one day after Yongche, another Chinese car rental service, announced $60 million funding round.
EHi was founded in 2006 as a traditional car rental company. Now the company has presence in about 70 Chinese cities with more than 500 stores, with over 13,000 cars available.
Enterprise Holdings acquired 15% of eHi in early this year and became the latter’s biggest shareholder. Other existing investors include Ignition, JAFCO, Qiming Ventures, Newaccess, CDHfund, Goldman Sachs, among others.
Ctrip launched an online car rental platform last year by partnering with eHi and another similar service AVIS.