MORE FROM KrASIA

CHINA BRIEF | SoftBank-backed used car trader Chehaoduo looks for fresh capital injections

Chehaoduo has landed a USD 1.5 billion investment from SoftBank’s Vision Fund in March 2019.

Brief_Automotive Brief_Automotive

SoftBank-backed Chehaoduo Group is looking at options to raise several hundred million dollars after auto sales slumped amid the coronavirus outbreak, Bloomberg reported on Tuesday.

The Beijing-based startup is exploring options including equity fundraising and asset-backed securities insurance, people familiar with the matter told Bloomberg. The company is arranging virtual meetingswith potential investors and considering seeking support from the local government.

The car platform is also weighing an initial public offering in late 2020 in either Hong Kong or the US, said the same source.

Chehaoduo confirmed that it is in the fundraising process, but refused to comment further, said Bloomberg.

Launched in 2015, Beijing-based Chehaoduo operates two main sites—an online used vehicle trading marketplace, Guazi.com, and an online retail platform for new cars called Maodou. It landed a USD 1.5 billion investment from SoftBank’s Vision Fund in March 2019 and thus secured a valuation of over USD 9 billion.

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.