Chinese used car trading platform Youxin has reportedly secured US$170 million of Series C funding from Baidu, KKR and Coatue, just six months after receiving a whopping US$260 million B round led by Warburg Pincus and Tiger Fund. A US$30 million Series A funding was raised from Legend Capital, DCM, Bertelsmann Asia Investments and Tencent in 2013.
Founded in 2011 by Dai Kun, former VP of car trading platform Yiche, Youxin’s core business brand Youxinpai is a B2B second-hand car auction service platform integrating auctions, vehicle detection, secure payment, logistics and transport for automobile manufacturers, second-hand car agencies and large companies.
The new funding will be used to develop Youxin’s B2C used car trading platform Youxin Second-hand Car which launches this week. Backed by a team of over 1000 staff, the platform will provide services in over 50 cities, according to the company.
China’s huge used car market is attracting flocks of Chinese internet companies to tap the booming market. Until recently, B2B platforms comprised the majority of car trading services due to the prolonged and complicated nature of transactions. But with a maturing market, more players have started to shift focus to B2C sector. Yixipai’s rival Cheyipai also launched a B2C service recently.
Following the investment, Youxin’s data will be integrated into Baidu’s Aladdin open data sharing platform for the development of new products. The tie-up will effectively connect the account and traffic resources of both parties. The cooperation also covers financial aspects such as car loans for users, and adding support for Baidu’s payment service Baifubao.
This is not the first time Baidu had invested in the transportation industry. The Chinese search giant acquired a stake in ride-share app Uber last year. Moreover, Baidu is reportedly pushing the rumored merger between Uber and Chinese car rental service provider Yongche.
[Update] Yongche released an official statement to deny the rumor on March 20, claiming that the company is open to cooperation with partners but will stay as an independent company.
On the other hand, Uber has teamed up Chinese luxury auto dealer Yongda Automobiles to provide discounts and financing for Uber drivers’ cars.
Image credit: Youxin
Editing by Mike Cormack (@bucketoftongues)