Alibaba leads $335 million funding for Chinese Car site SouChe
Bloomberg|
Updated: Nov 01, 2017, 11.45 PM IST
BEIJING: SouChe.com, a Chinese car trading site, raised $335 million in a funding round led by Alibaba Group Holding Ltd as it expands in auto-financing and prepares for a potential US IPO. Alibaba will become the biggest backer of the site and integrate parts of the business with its own ecommerce services.
Warburg Pincus, Primavera Capital and CMB International also took part. The new funding round valued the company at between $1 billion and $2 billion, according to SouChe founder Yao Junhong. SouChe sells used cars from dealers across the country, with interest in second-hand vehicles increasing as the Chinese economy begins to slow. The company also provides financing for customers to buy new vehicles for a year, which they can then purchase outright, trade in for a new model or hand back.
The company may consider an IPO and could do so at a higher valuation than Qudian Inc, Yao said. The online provider of credit products sold stock at a valuation of more than $6 billion last month.
“We are considering a US IPO for next year, potentially towards the end of the year,” Yao said. “But our finances are strong so we may not have to do it.” The latest round follows an earlier funding that included Alibaba affiliate Ant Financial, which is working with SouChe to finance products and services through a product called TanGeChe.
Warburg Pincus, Primavera Capital and CMB International also took part. The new funding round valued the company at between $1 billion and $2 billion, according to SouChe founder Yao Junhong. SouChe sells used cars from dealers across the country, with interest in second-hand vehicles increasing as the Chinese economy begins to slow. The company also provides financing for customers to buy new vehicles for a year, which they can then purchase outright, trade in for a new model or hand back.
The company may consider an IPO and could do so at a higher valuation than Qudian Inc, Yao said. The online provider of credit products sold stock at a valuation of more than $6 billion last month.
“We are considering a US IPO for next year, potentially towards the end of the year,” Yao said. “But our finances are strong so we may not have to do it.” The latest round follows an earlier funding that included Alibaba affiliate Ant Financial, which is working with SouChe to finance products and services through a product called TanGeChe.
