Hangzhou-based Maihaoche, a new car-focused B2B e-commerce platform, has secured more than USD 20 million in its latest fundraising round, according to its early investor Sinovation Ventures, which also joined the round.
Zhejiang Heico Holding Group, a firm that runs businesses including software and the Internet of Things (IoT), was the main investor.
Maihaoche allows small auto dealers to order new cars on its online platform from automakers’ franchised dealers at attractive prices. The company also offers logistics and supply chain financing services to help these smaller dealers deliver cars to end buyers.
Li Yanzhu, founder and CEO of Maihaoche, said that the new funds will make the company more capable of helping auto dealers run their business, without offering more details.
This deal comes as sales of first-hand automobiles in China dived 42% year-on-year in the first two months of this year. Affected by the coronavirus outbreak, only about 2.2. million new vehicles were sold in China during January and February, according to China Association of Automobile Manufacturers.
In late March, Chinese online used car trading platform Uxin (NASDAQ: UXIN) sold its B2B platform to online classifieds marketplace 58.com (NYSE: WUBA), due to operational difficulties caused by the pandemic, KrASIA reported.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.