Chemao Raises $189M Series B Round From Zhefu Holding

Hangzhou-based online second-hand automobile trading platform Chemao has completed RMB1.2 billion (US$189 million) series B round of financing led by Shenzhen-listed industrial firm Zhefu Holding Group, according to a company announcement.

Chemao says it has also established a second-hand car loan business with Zhefu Holding and Wacai, a personal finance bookkeeping and wealth management app maker backed by New Horizon Capital, China Broadband Capital, and many other investors.

Founded in 2012, Chemao currently offer services in six Chinese cities, including Beijing, Shanghai and Hangzhou.

The Chinese used car start-ups have been attracting significant investments from investors.  In February, Beijing-based Cheyipai completed US$110 million series D financing led by Chinese social networking firm Renren Inc.

Around the same time, Baidu Inc., KKR & Co., L.P., and Coatue Management LLC led a US$170 million round in Beijing-based Youxinpai.

In September 2014, Beijing-based Youxinpai raised US$260 million series C round of financing led byWarburg Pincus and Tiger Global Management LLC.

Other smaller venture deals include Baird Capital’s lead in an undisclosed series A round in Shanghai-based used car auction platform Carsing in March, as well as a US$10 million series A round in Che101 led by N5 Capital.