Beijing-based Chinese online used car auction company Youxinpai has raised US$170 million from China’s leading search engine, Baidu Inc., global private equity firm KKR & Co. L.P., and investment management firm Coatue Management LLC, in its latest round of funding, according to a joint announcement.
This funding round closed on March 15, and will be used to expand Youxinpai’s platform into the B2C used car market. KKR invested through its China Growth Fund.
Total transaction volume on the Chinese used car market was RMB368 billion (US$58 billion) in 2014, up 26.03% from 2013. Around 6.05 million used cars were sold in 2014, an increase of 16.33% over the previous year, according to the China Automobile Dealers Association.
Founded in 2011, Youxinpai provides second-hand car auction services in 365 cities in China, and operates six Brick and mortar auction facilities. It claims it has close to 15,000 second-hand car dealers using its services.