Beijing-based online used car auction company Youxinpai is reportedly raising as much as US$400 million from existing investor Baidu Inc. and other investors, according to Chinese media reports.
If completed, the large financing round will help solidify Youxinpai’s leading position in the used car services market in China, an area that has attracted much venture capital investments.
Chinese ride sharing company Didi Kuaidi also announced earlier in December that it plans to enter the second-hand car trading business in the future.
Yang Haoyong, a co-founder of Ganji.com, has also agreed to take control and expand a used car trading platform named Guazi.com spun off from 58.com, after Ganjie.com was acquired by 58.com Inc.
In March, Youxinpai raised US$170 million from Baidu, KKR & Co. L.P. and investment management firm Coatue Management LLC.
In September 2014, the company raised US$260 million in a series C round led by private equity firm Warburg Pincus and New York-based investment firm Tiger Global Management LLC.
Launched in 2011, Youxinpai previously raised two rounds of financing from venture capital firms Legend Capital, Bertelsmann Asia Investments (BAI), DCM and Tencent Holdings Limited.